BFSI Organisations in India Believe AI Agents Will Handle 75% of Routine Back-Office Tasks: Iron Mountain and HFS’ Report

Key findings from India:

• 83% strongly agreed that companies not digitising their back-office now risk losing competitive advantage permanently.
• 57% respondents stated that AI agents will soon manage more than 75% of routine BFSI back-office operations autonomously.
• 50% strongly agreed the back-office, as we know it today, will cease to exist within three years.
• 23% of respondents said their organisations are planning to invest between $10M and $25M in digital back-office transformation over the next 24 months, with about 21% indicating they are willing to spend more than $50M.
• 38% of respondents said that there is complete reliance on third-party consultants and vendors for back-office operations transformation. However, 50% of respondents believe it will be a joint effort between their team and their preferred vendor’s team.

In an era defined by AI disruption, tighter regulations, and unrelenting pressure to deliver more with less, the banking, financial services, and insurance (BFSI) back office is no longer just a support function. It has now become the engine of resilience, trust, and growth. ‘The Zero Office: Reinventing the Banking Back Office as a Growth Engine,’ a new report from Iron Mountain (NYSE: IRM) in partnership with HFS Research, surveyed more than 500 senior executives across the US, UK, Canada, France, India, Brazil, and Australia. The findings reveal how BFSI organisations are modernising their back-office with automation, predictive compliance, and modular workflows at scale.

India Highlights:

The Rise of the AI-Driven Back Office

Half of the respondents strongly agreed the traditional back-office will vanish within three years, while almost three in five (57%) said AI agents will soon autonomously manage more than 75% of routine BFSI operations. Around 37% expect large-scale transformation within one to two years. The results also showed that technology adoption is well underway, with 58% reported enterprise-wide deployments of modular APIs and SaaS workflows, while 41% are developing strategic plans for agentic, end-to-end workflows. Another 33% are scaling automation, with pilots for document intelligence (32%) and generative AI (35%) also gaining traction.

Business Drivers and Challenges

The top priorities driving transformation include cost efficiency, productivity gains, and strengthening information security through digital controls, followed by greater agility and flexibility.

However, challenges remain. Skill gaps and workforce readiness (31%) and data quality issues (18%) were cited as the biggest barriers to achieving fully digital outcomes. Integration with vendors, regulators, and partners is seen as vital, with 62% saying ecosystem orchestration is critical for success.

Governance, Compliance, and Vendor Strategy

Organisations are strengthening governance in AI adoption through explainability and auditability tools, with 47% also relying on human-in-the-loop oversight. Compliance capabilities are advancing, with 35% already operating fully predictive, real-time systems and another 35% making significant progress. On vendor management, over half (52%) are exploring rationalisation of back-office partnerships to simplify operations.

Workforce Transformation and ROI Outlook

The findings also show that workforces are undergoing a major shift, with 41% expecting roles to move from transactional tasks to strategic decision-making and 35% highlighting reskilling and upskilling needs. Yet readiness remains limited, as only 23% said their workforce is fully prepared, while 45% are only partially ready and require extensive training. Organisations are starting to see the benefits of AI in document intelligence, with 28% citing improved customer experience and 39% reporting moderate success in extracting insights and connecting fragmented data. 23% plan to invest between $10M and $25M in digital back-office transformation over the next 24 months, with about 21% prepared to spend more than $50M. Looking ahead, 32% of respondents expect a 10%–25% ROI from their back-office transformation initiatives over the next three years.

The Bottom Line: Enough ambition – It’s time for action: Radical transformers are proving that aggressive back-office transformation isn’t just feasible—it’s profitable. For BFSI leaders looking to close the ambition-reality gap, the playbook is clear: invest with urgency, align with growth, upskill your people, and measure what matters. Read More – https://resources.ironmountain.com/en-gb/whitepapers/t/the-banking-financial-services-and-insurance-back-office-transformation-paradox