“In 2018, the business value of AI was estimated to be $41.1bn, which includes the cost savings and efficiencies of introducing AI technology compared to keeping existing infrastructures and processes.
North America is tipped to be the biggest market for AI in banking between 2018 and 2023. The business value of AI in this region will go from $14.7bn in 2018 to nearly $79bn by 2030.
‘Countries like China, Japan, South Korea, Hong Kong and Singapore are likely to drive the demand for AI within the banking sector over the next ten years,’ added Tait.
It’s not all good news: job losses and re-assignments will be common, IHS Markit estimates that by 2030, around 500,000 bank workers in the United Kingdom and 1.3m in the United States could be affected.”
“Today and under Rometty’s leadership, IBM headcount has dropped approximately 25%. There are now less than 350,000 people. How? In part, artificial intelligence.
I agree. Every role in the corporate hierarchy will in one way, shape or form be affected by the introduction of AI over time. She went on to say that job losses as a result of AI is a “red herring” and that we really shouldn’t “follow that logic all over the place.”
By example, IBM has reduced its global HR workforce by 30% through the introduction of AI into the company.
IBM’s talent strategy also involves the proactive retention of people. Its HR AI system accurately predicts 95% of the time if people might want to leave the company. “It has saved the company over $300 million,” said Rometty, specifically due to proactive retention practices.
According to Rometty, this new way of operating at IBM has delivered a 20% bump in employee engagement scores across the company.”
“Bankers hope to eliminate most customer service reps by digitizing the processes they perform. You might have noticed the prevalence of self-service menus online. With the right software, it’s easy to cancel a lost credit card without ever talking to anyone.
The next step is implementing the right AI software, to help assist customers who want or need some sort of interaction with a company representative that doesn’t have to be human.
At the Google I/O developers conference last year, Alphabet showed off software it called Duplex. The showstopper was an AI bot that sounded like a human, could carry on a reasonably intelligent conversation, and was capable of taking instructions.