A new global report by Cloudera and Finextra Research has revealed that hybrid AI has become the dominant approach in the financial services industry, with 91% of surveyed organisations rating it as highly valuable. The study highlights that while AI adoption continues to expand, firms face persistent data and security challenges that hinder full-scale integration.
Growing reliance on hybrid AI
The report, based on a survey of 155 financial executives across regions including North America, Europe, Asia Pacific, Latin America, and the Middle East, shows that 62% of financial institutions now use a hybrid AI strategy. This model integrates public cloud, on-premise data centres, and edge environments to deploy AI where data resides.
Hybrid AI is increasingly viewed as essential for managing legacy systems, scaling efficiently, and supporting the complex demands of AI model training and deployment. The findings indicate that a flexible data infrastructure capable of operating “anywhere” is now fundamental to maintaining competitiveness in financial services.
Data and security remain key obstacles
Despite the rapid pace of AI adoption, 97% of organisations reported that data silos continue to hinder effective model deployment. Data security was cited as the leading barrier to achieving enterprise-wide AI integration. These issues have created an “implementation gap” between firms experimenting with AI and those that have successfully embedded it across operations.
Nearly half of the surveyed organisations (48%) are still in the early stages of AI deployment, using the technology for limited applications. Only 26% have achieved full enterprise integration, positioning them ahead of peers in harnessing AI for strategic advantage.
Adrien Chenallier, Global Director of AI Solutions for Financial Services at Cloudera, emphasised the importance of a consistent framework to manage data across environments. “The report confirms that a data-anywhere, hybrid strategy is non-negotiable. It also highlights that infrastructure alone isn’t enough,” he said. “To truly bridge the implementation gap, financial institutions need a unified data and AI platform that ensures consistent governance and security across all environments. This is the only way to build trust, manage risk, and accelerate AI adoption at scale.”
Governance and trust underpin AI success
The study also found that 84% of respondents view unified data governance and security frameworks as “critical” or “very important” for hybrid AI success. Security capabilities are a key consideration when selecting AI platform vendors, with 25% of firms ranking security as their top priority.
Gary Wright, Managing Director of Finextra Research, noted that success in AI depends not only on investment but also on strategic decision-making. “For our members, the reality is clear: AI can only deliver its full potential when data sovereignty, privacy, and trust are guaranteed,” he said. “Our survey results highlight both progress and gaps, underscoring that AI success will depend not just on the scale of investment, but on strategic decisions around infrastructure, vendor partnerships, and robust data governance.”
As financial institutions navigate the complexities of AI adoption, the findings suggest that bridging the implementation gap requires more than technological innovation. Establishing trust through governance, security, and unified data management will determine how effectively firms can scale AI responsibly and sustainably.
The Cloudera and Finextra report underscores a shift towards hybrid AI as a defining feature of the next phase of digital transformation in financial services, where adaptability, compliance, and security will shape long-term success.
