Trustworthy AI in banking remains out of reach for most institutions, according to a new report from SAS and IDC released on April 7, 2026. The Data and AI Impact Report: The Trust Imperative, based on a global survey of 2,375 IT and business leaders, found that only 11% of banks have achieved both high internal confidence in artificial intelligence and AI systems that are demonstrably reliable.

Banking outpaces government, insurance, and life sciences in both AI spending and adoption of responsible AI practices. About 23% of banks operate at the highest level of IDC’s Trustworthy AI Index. However, most institutions still fall well short of what the report defines as the “ideal state,” which combines high trust with high trustworthiness.

The Trust Gap in Trustworthy AI in Banking

Nearly half of banks, 47%, fall into what IDC calls the “trust dilemma.” These institutions either underuse reliable AI because they lack sufficient confidence in it, or they overrely on AI systems that have not been adequately validated. The gap between AI ambition and actual readiness is wide.

“On trustworthy AI, banking leads every sector in this study, and even so, most banks’ foundational readiness is nowhere near where it needs to be. Roughly nine in 10 banks have yet to fully align trust with proof, and about one in five are still running on siloed data. Closing the gap between AI ambition and AI readiness should be a top-down priority for all banks.”

Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions, SAS

Middle East Banks Face Similar Pressures

As the UAE’s Vision 2031 and broader digital transformation efforts gain momentum, banks across the Middle East are increasingly adopting advanced technologies to improve efficiency and deliver better customer experiences. Michel Ghorayeb, Managing Director at SAS UAE, said banks in the region are well-positioned to build on strong data foundations and clear governance structures.

“Banks that place responsible AI at the heart of their strategy will be best positioned to drive innovation, earn trust, and create sustainable long-term value.”

Michel Ghorayeb, Managing Director, SAS UAE

Investment Rising, But Foundations Remain Fragile

Banks’ AI spending exceeds all other sectors in the study. Most banks, 60%, expect AI budget growth between 4% and 20%, while 12% anticipate even steeper increases. Despite this momentum, the report identified significant structural weaknesses across the industry.

  • Data silos: 19% of banks still operate with siloed data infrastructure, the worst rate among the study’s focus industries.
  • Governance gaps: 45% of banks lack effective data governance, and 41% lack centralized or optimized data infrastructure.
  • Talent shortages: 42% of banks face shortages of specialized AI skills.

To address these gaps, 52% of banks plan to expand their AI architecture, and 43% plan to form or grow dedicated AI teams. Fewer than one-third, 31%, plan to focus on developing and tuning AI models themselves.

“Without strong data architectures, governance frameworks and talent pipelines, banks risk pouring money into AI initiatives that can’t deliver ROI, or worse, that undermine the very trust they depend on.”

Kathy Lange, Research Director of the AI and Automation Practice, IDC

Responsible Innovation Delivers Higher Returns

The report challenges the assumption that AI‘s primary value in banking is cost reduction. Banking is the only sector in the study that ranks product and service innovation above process efficiency as the leading source of AI-driven value. Cross-industry data supports this: organizations using AI to improve customer experience reported a return of $1.83 for every dollar invested, compared to $1.54 for those focused on cost savings.

Moreover, organizations that prioritized trustworthy AI were 60% more likely to report doubling their overall return on AI initiatives. Banks are also moving faster than other sectors toward agentic AI, with nearly one-third planning increases in trustworthy AI investment to support more autonomous systems.

“The banks that win will be ones that invest in governance, explainability, transparency and strong data foundations before they scale, not after something breaks.”

Alex Kwiatkowski, Director of Global Financial Services, SAS

About the Report

The Data and AI Impact Report was published in September 2025 by SAS, with research insights provided by IDC. The study surveyed 2,375 IT and business leaders across four sectors: banking, government, insurance, and life sciences. The full report is available at SAS’s website.