GCCs in BFSI: Why Agentic AI Trumps Generative AI
Agentic AI is a major disruptor for BFSI GCCs due to its real-time decision-making capabilities.
7 JUNE 2025 / 3 min read
The financial industry is undergoing a significant transformation, driven primarily by advancements in artificial intelligence (AI). While Generative AI has garnered attention for its ability to create content, summarise reports, and personalise customer interactions, Agentic AI is emerging as a game-changer in the Banking, Financial Services, and Insurance (BFSI) sector.
The key distinction between Generative AI and Agentic AI lies in their functionality. Generative AI focuses on producing outputs based on inputs, whereas Agentic AI is designed to take autonomous actions, make complex decisions, and drive real-time financial processes. In an industry where precision, compliance, and risk management are paramount, the ability of Agentic AI to act decisively and autonomously makes it an indispensable tool.
Agentic AI is a major disruptor for BFSI GCCs due to its real-time decision-making capabilities, allowing GCCs to respond swiftly to market fluctuations and regulatory changes. This is achieved through features like fraud identification, trade placement, risk management, and compliance.
The BFSI sector requires real-time decision-making, particularly in areas such as fraud prevention, trading, and compliance. Agentic AI's ability to autonomously execute decisions makes it better suited to meet these demands. In high-frequency trading, Agentic AI can continuously monitor market fluctuations, predict stock trends, and execute trades based on real-time data. Similarly, in compliance and regulatory automation, Agentic AI can enforce policies automatically, minimising human error and ensuring adherence to changing regulations.
While Generative AI can enhance customer engagement and efficiency, Agentic AI drives action, prevents fraud, optimises trading, and ensures compliance. By combining both types of AI, financial institutions can create a seamless banking experience. For example, an AI-driven financial assistant powered by both Generative AI and Agentic AI can summarise spending habits and adjust credit limits automatically based on spending patterns.
Unlike Generative AI, which generates insights and reports, Agentic AI takes preventive action, minimising human error and ensuring adherence to changing regulations. This autonomy enables Agentic AI to automate complex workflows, freeing up human resources for high-value tasks like financial advisory and relationship management.
The benefits of Agentic AI for BFSI GCCs are multifaceted. It improves risk management by autonomously identifying potential market disruptions or regulatory changes and adjusting exposure accordingly. Agentic AI also optimises customer service, offering tailored financial advice, automated portfolio management, and fraud detection systems that continuously learn and adapt. Additionally, automation can increase workforce productivity by up to 40%, enabling GCCs to reallocate human resources toward high-value tasks.
Early adopters of Agentic AI can expect a 22-30% potential increase in efficiency and effectiveness. To stay ahead, BFSI GCCs must invest in Agentic AI and develop a robust data foundation to support its deployment. However, there are key challenges to consider, such as ensuring data readiness and governance, acquiring the right talent, managing change, and integrating Agentic AI with existing technology investments.
Agentic AI's capabilities extend far beyond content creation. It can identify fraud, place trades, manage risk, and drive compliance in real-time, making it a vital component of modern financial institutions. For instance, Agentic AI can automatically monitor and respond to fraudulent activities, freezing transactions and alerting customers without human intervention. In contrast, Generative AI might generate a fraud analysis report but cannot take preventive action.
By adopting Agentic AI, BFSI GCCs in India can drive innovation, efficiency, and growth, staying ahead of the curve in a highly regulated financial landscape.
