“Ian Wilson, former Head of Artificial Intelligence at HSBC – businesses don’t need an AI strategy. Businesses need multiple AI strategies for each functional division at their company. What works for customer service isn’t going to work for anti-money laundering.
Interviewees highlighted three core challenges to adopting AI in banking:
It’s unclear whether or not AI will generate an ROI
Banks and their leaders don’t foster a culture that allows data scientists to experiment with AI so that it does generate ROI
Banks have legacy IT and data infrastructures that weren’t organized for using AI”
Check out the full article including podcast audio of the interviews.
I was excited to see the announcement of this new report titled “AI in Banking Vendor Scorecard” from Emerj earlier today. The price has caused me to pause on the purchase (see below).
However, I’m supposed to receive an executive summary by email. I’ll let you know if I move forward the purchase.
“Two points among the dozens of insights within the report jumped out at us immediately:
1 – Chatbots are Overhyped: Conversational interfaces are the focus of over 35% of the AI-related press releases from top 100 banks, but they represent only 8% of the total funding received by AI vendors selling into banking.
2 – Banks are Focused on Risk, Not Efficiencies: Of the nearly $3 billion raised by AI vendors selling into banking, well over 50% was raised by vendors selling products for fraud and cybersecurity, compliance, risk management, and lending.”
On a separate but related note, I looked through the table of contents, and there’s a segment that doesn’t appeared to be covered. I’m really looking for AI vendors that are experts in the financial services space; plus, are specifically focused on delivering personalized content and recommendations or “nudges” as I heard them referenced at the ABA conference last week.
I’m not ready to recommend any of these vendors quite yet, but here are a few that I’m researching: