“As documented by research into artificial intelligence by PYMNTS and Brighterion, among the main AI problems for financial institutions is lack of understanding. Executives and managers often confuse artificial intelligence (which is capable of unsupervised learning) with its less sophisticated but close cousin, machine learning (which is capable of supervised learning). In fact, as Webster and Adjaoute discussed, confusion about what AI really is can lead to delays in deployments. Some 15 percent of financial institutions that have not yet implemented AI (but want to do so) report difficulties getting buy-in from executives.
The larger promise of AI’s capabilities does seem to be getting out, however. The PYMNTS-Brighterion research shows that 41.1 percent of commercial banks are “very” or “extremely” interested in adopting smart agents. Not only that, but 45 percent of decision makers working in fraud detection are interested in adopting smart agents.
Lack of transparency also hinders deployment of artificial intelligence and can also be considered a source of failure – at least so far in the AI story as it relates to working within financial institutions. PYMNTS research found that 42 percent of FIs said the AI model is not transparent enough.”