By Ray Birch
SCOTTSDALE, Ariz.—Generative AI isn’t just a buzzword—it’s already delivering measurable productivity gains for financial institutions, and the cost of waiting could be steep, one analyst is saying.
McKinsey estimates AI could automate up to half of banking tasks, unlocking significant cost savings and efficiency gains, while Accenture projects a 20% to 30% reduction in operational costs over the next five years.
But according to Cornerstone Advisors’ consultant Emily Osburn, credit unions are still in the early stages of adoption—and delaying implementation while waiting for the technology to be “perfect” is a mistake they can’t afford to make.
Osburn, who coauthored The Playbook for Generative AI-Driven Productivity Improvement for Community Banks and Credit Unions with Cornerstone Chief Research Officer Ron Shevlin, said she was surprised by how few credit unions have developed a clear AI strategy.
“Less than half are using chatbots, and only about a quarter have deployed generative AI,” she noted. “I maybe expected more institutions to be further along. Many are still figuring it out one use case at a time. We believe AI should be treated as foundational infrastructure—like the cloud—rather than an isolated tool.”
A Practical Tool, Not Hype
AI adoption among community-based financial institutions has accelerated in just a few years. By the end of 2021, only 18% had chatbots and 12% had deployed machine learning. Heading into 2025, more than a third have chatbots, and a quarter are using both machine learning and generative AI tools, the report notes.
“It’s not some hypothetical thing—it’s really driving measurable productivity,” Osburn said.
Examples from the report show AI’s reach across banking functions. Stride Bank’s marketing team of three, for example, uses ChatGPT and other generative AI tools to expand their output, handle internal communications, and create training materials—saving weeks of manual effort. Other institutions are leveraging AI to automate compliance tasks, extract insights from regulatory documents, and detect anomalies in real time to enhance risk management.
Beyond The Basics: Where AI Is Heading
Cornerstone’s research suggests the next wave of AI in banking will extend into deeper personalization and financial guidance. Predictive analytics, AI-powered voice banking, and AI-driven financial planning could help credit unions provide members with personalized roadmaps for saving, investing, and managing debt.
By moving from transactional service to proactive financial partnership, credit unions could not only improve member outcomes but also strengthen long-term relationships—provided they balance innovation with responsible governance to maintain compliance and trust, the report suggests.
The Cultural Challenge
For credit unions, the biggest hurdle isn’t technology—it’s people. Osburn said skepticism among staff and executives is common, and overcoming that resistance requires a cultural shift supported by governance, training, and leadership alignment.
“Strong governance frameworks, executive buy-in, and clear policies are essential,” she said. “You have to address the distrust some staff may have toward AI-generated outputs.”
How To Start
For credit unions unsure where to begin, Osburn offered two practical starting points:
- Define use cases. Identify specific ways AI could enhance productivity and support staff in their day-to-day work.
- Audit existing vendors. Review current technology partners and platforms to see where AI may already be integrated, even if it’s not obvious.
She also emphasized the importance of measuring results. “Compare how long a process took before AI versus after. Time savings are one of the easiest ways to quantify the impact,” she said.
Don’t Wait For Perfection
Perhaps Osburn’s most urgent message is that credit unions should not delay adoption while waiting for the technology to mature.
“You can’t just sit around and wait for AI to be perfect,” she said. “Start small, focus on measurable impacts, and understand that it’s a continuous journey. The upside is real—and we’re just at the beginning.”