118 VIEWPOINT “The human touch in banking remains critical, but firms can always use AI to make employees faster, smarter and better at their jobs” Most banks by now understand the benefits of adopting artificial intelligence. But being convinced of the value is just the beginning – they also need to implement the technology and may not know how to get started. Here are four insights to help ensure a successful AI journey. 1. The time to act is now The ‘wait and see’ approach to AI is becoming increasingly problematic, because although firms may not want to be the first to adopt AI, they definitely don’t want to be the last. High-profile institutions like JP Morgan Chase and Wells Fargo have already led the charge on generative AI-based employee tools and AI-powered virtual assistants, respectively. And that means other banks can’t be far behind. As more institutions experiment with AI, they will find it increasingly difficult to use AI as a differentiator from their competitors. Make no mistake, the AI hype cycle is in full effect, thanks to companies like Microsoft, and that means that customers are waiting to see how banks will leverage this technology – not whether they will adopt it at all. So, get started now, even if that means starting small. For example, organisations can start with a small launch first, then adopt it on a larger scale. 2. Start with a specific target area It’s essential to have a specific business use case in mind before you begin adopting AI. Simply rushing an AI value proposition to market will never work if there is no clear vision for its usage, as this will make it impossible to budget, among other things. Financial services providers should always start with the business case so they can actually define what is needed to get done. They should ask themselves questions like ‘why do I want to adopt AI?’ and ‘what’s the problem we want to solve?’. Identifying the business case means they can better understand the return on investment and avoid risks. There’s no option for zero risk with AI but if firms know what they are looking to get out of it, they can define the risk and investment factors, whether it’s worth it and if there’s a way to mitigate them. 3. There is no ‘AI banking’ AI should always be used to better serve the customer. Rather than looking at it as a revolutionary new style of banking, banks should consider it as an advanced tool that can help them to reach their business objectives, of which customer-centricity should be front and centre. And while AI will allow you to reduce headcount – particularly when it comes to tiresome manual processes like data entry and Four ways to embrace AI in banking THOMAS FUSS: BACKBASE Financial services providers need to start experimenting with AI as soon as possible to avoid falling behind competitors. They can do this by establishing specific use cases and adopting AI platform models to better serve their customers
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