Data & Feeds Team
A recent survey by LSEG exploring cloud adoption – including the use of artificial intelligence (AI) in the cloud – indicates that respondents believe that this combination of technologies is set to profoundly reshape the financial services industry. However, each region appears to have a different approach to AI engagement today, which could influence its global competitive position tomorrow.
- AI in the cloud promises to transform the financial services industry, with 91% of firms globally planning adoption within 12 months.
- Regional strategies differ: APAC prioritises innovation, the Americas focuses on automation and Europe seeks balanced efficiency.
- LSEG is constantly innovating to help support new AI in the cloud use cases as they emerge – for the front, middle, and back-offices – across the globe.
In the recent LSEG survey on cloud adoption, 91% of respondents globally said that they are either already using or planning to use cloud services for AI initiatives within the next 12 months. However, both cloud strategies and AI plans differ across the three regions surveyed – APAC, Americas, and Europe. These alternative approaches are likely to shape future competitive advantages that emerge out of AI adoption for these regions over the next few years.
A total of 453 financial services executives around the globe completed the survey. Nearly two-thirds (63%) of survey respondents are primary decision-makers for financial market data and IT solutions in their organisation. The survey covered 12 countries.
APAC aims for innovation
APAC respondents show strong optimism about technology’s transformative potential – their belief that their firms are seizing the opportunity that the cloud offers to transform business processes, analytics, and more – translating into equal optimism towards AI.
For example, two-thirds (66%) of APAC respondents say that AI and machine learning is a use case their organisation expects to use cloud services solutions for over the next three years – making it the top use case of those included in the survey. Generative AI is the most popular AI use case that APAC respondents are exploring through cloud services – standing at 61%.
Looking at general trends, APAC respondents view AI as a part of their cloud ecosystem of innovation. One respondent explains: “Cloud technologies will accelerate innovation in the financial industry by enabling real-time data analytics, enhancing cybersecurity, reducing operational costs, fostering fintech partnerships and driving adoption of AI- powered financial services globally.” APAC also sees AI as opening new opportunities: “We are considering using AI to provide insurance services and are considering incorporating a BOT.” Another respondent notes that APAC firms are already using AI to generate code. So, overall APAC respondents believe that AI in the cloud will provide new possibilities for innovation in the medium-term.
Americas focuses on automation
A more complex picture emerges in the Americas. While many firms appear to be focusing on migrating middle-office processes into the cloud, their approach to AI could be broader.
Americas respondents (87%) say they are advanced in adopting AI capabilities. Yet, AI and machine learning only rank fourth among use cases planned for deployment in the cloud over the next three years – compared with Europe and APAC, where this ranked at first place. In the Americas, more respondents intend to migrate compliance, risk management and regulatory reporting to the cloud. Therefore, it’s not surprising that there is also a focus for Americas respondents on middle-office automation, with one respondent noting: “Cloud tech will enhance security, scalability, and efficiency, reshaping finance with AI-driven automation.”
Interestingly, at 64%, Generative AI is the top use case for AI in the cloud in the Americas, indicating an openness to genuine innovation in the application of the technology. Certainly, Americas respondents recognise the scale of the change that is to come: “Cloud and AI are the future. The industry will be different in the next 5 to 10 years.”
Europe balances efficiency and innovation
Europe-based respondents express strong enthusiasm for cloud-enabled AI use cases, adopting a balanced approach that draws from APAC’s customer-centric strategies and the Americas’ focus on efficiency and middle-office applications.
One respondent noted: “Cloud platforms provide robust ecosystems for deploying AI and machine learning tools” for data analytics, however, only 80% of European respondents say they are either somewhat or very advanced in adopting AI capabilities, compared with 88% for APAC and 87% for the Americas. In addition, 19% say they are not very advanced – notably higher than the 11% in both APAC and the Americas.
While results indicate the adoption of AI capabilities in the cloud is lower in Europe, respondents show a strategic mindset that balances the cost-efficiency focus seen in the Americas with APAC’s innovation-led, customer-centric approach. For example, just 49% of European organisations report using cloud services to build AI and machine learning initiatives, compared with 59% in APAC and the Americas. Still, European firms – like their U.S. counterparts – are prioritising efficiency in middle-office operations through cloud-based AI. One respondent highlighted the benefits: “These technologies offer numerous advantages, including enhanced customer experiences, improved risk management, operation efficiency, and robust compliance. By adopting AI and cloud solutions, financial institutions can stay competitive and innovate continuously.”
Preparing for the future
It’s clear that financial services firms are taking a variety of strategic approaches to AI in the cloud, depending on their region. LSEG supports this global diversity by enabling successful AI use cases in the cloud across the front, middle, and back-offices. As Kristin Hochstein, LSEG’s Global Head of Pricing & Reference Services explains: “Clients are demanding more content to fuel their AI initiatives – deeper history, greater diversity, and cleaner tick data – but above all, they require data they can trust. This creates a dual role for AI. Internally, we use AI to enhance our own data quality to meet that high standard. We are also cautiously exploring how AI can help fill data gaps, though any such use would require clear disclaimers to protect the trust we’ve built on our structured sourcing and curation rules.”
To support the evolution of AI in the cloud, LSEG offers the market’s most comprehensive and trusted global data universe. Our machine-ready data is filtered, cleaned, and integrated to streamline sourcing and preparation for data science. Available across the latency spectrum, from ultra-low latency to historical tick data, our solutions are built to power a wide range of AI use cases in the cloud, enabling our customers to make accurate and confident decisions, faster.
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