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Use and Risk Management of Generative AI by Japanese Financial Institutions -Based on the Results of FY2026 Survey-

August 24, 2026
Financial System and Bank Examination Department, Bank of Japan

Background of this survey

Generative AI (GenAI) has been rapidly penetrating society, and its use in Japanese financial institutions is expanding from general administrative tasks to core operations leveraging customer data. The use of GenAI is expected to expand and evolve further with technological advancements.

Financial institutions need to understand the specific risks of GenAI, such as information leakage and the uncertainty of outputs and behaviors, and to enhance risk management frameworks based on the risk-based approach.

With these issues in mind, the Bank of Japan conducted a survey on the use of AI, etc., targeting 150 financial institutions. This is the third survey since fiscal year 2024.

This Report, drawing on the views we exchanged in the interviews with some IT vendors and financial institutions, describes the current status and challenges in the use of GenAI and in risk management issues in the financial industry.

Conclusion

The key findings from the survey and interviews are listed below:

  1. Over 90 percent of financial institutions are using or trialing GenAI. The rate of adoption has increased across all business types, with a particularly notable rise in Regional banks II over the past year.
  2. The use cases for GenAI have expanded from general administrative tasks to core operations leveraging customer information. However, the number of institutions directly presenting GenAI-generated outputs to customers remains limited at this stage.
  3. Regarding the evaluation of GenAI, many institutions have responded that it is "usable for business but needs improvement." This sentiment is likely driven by expectations of future enhancements in the financial institutions' capabilities to utilize it more effectively and technological advancements in GenAI.
  4. Regarding risk management, a considerable number of institutions have made progress in information management and the development of internal regulations. Nevertheless, many institutions have identified areas such as governance, third-party risk management, and safety and security as either "having room for improvement" or "under consideration." Strengthened efforts and further progress in these areas are expected in the future.
  5. Regarding challenges in utilizing GenAI, while improvements have been made in the development of guidelines and IT infrastructure, future challenges remain in areas such as business promotions, human resources, IT infrastructure and data readiness, as well as cybersecurity, which are recognized as areas requiring further attention.

According to the results, Japanese financial institutions are expected to further expand and evolve the use of GenAI, including in their core operations.

In such a context, the challenges faced by financial institutions and the risks requiring management are likely to become increasingly complex and diverse. In particular, presenting GenAI-generated outputs directly to customers, deploying AI agents that autonomously handle tasks, and introducing frontier AI with cutting-edge performance are areas that demand carefully considered approaches to risk management and governance.

To ensure financial institutions can utilize GenAI, including frontier AI, while maintaining stable business operations, it will be essential for senior management to capture both the benefits and the risks of adopting new technologies. They will also need to actively engage and lead in efforts to secure necessary resources and enhance appropriate frameworks for effective risk management.

The Bank of Japan will continue to engage in dialogue with financial institutions on the use of GenAI and on risk management through on-site examinations, monitoring, and seminars.

Notice

Please contact the Financial System and Bank Examination Department at the e-mail address below to request permission in advance when reproducing or copying the contents of this Report for commercial purposes.

Please credit the source when quoting, reproducing, or copying the contents of this Report for non-commercial purposes.

Inquiries

Examination Planning Division, Financial System and Bank Examination Department

E-mail : csrbcm@boj.or.jp