Banks embrace AI but unclear on how to use it for specific biz challenges

Two thirds of large banks have already deployed artificial intelligence and machine learning, according to a survey carried out by Tabb Group, yet the vast majority are still unaware of how to apply the technology to solve business problems.

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Banks embrace AI but unclear on how to use it for specific biz challenges

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Of 200 global tier one and tier two banks quizzed by Tabb on behalf of vendor Squirro, 83% have evaluated AI and machine learning and 67% have actively deployed them.

However, despite a widespread belief that AI is an important disrupter for the industry, the survey highlights a lack of understanding of the tech as specifically applied to improving business processes, with 83% of respondents still unaware of how to use it to solve business problems.

When it comes to how the tech can be useful, 87% say that it would be highly impactful if a an AI engine could spot relevant events that led to engaging with a client and closing a deal. Bankers recognize that AI driven insights will have a tremendous impact when it comes to anticipating market events to stay ahead of the competition. Meanwhile, 84% of respondents say that a real-time 360° client view, combining internal and external data was either important or very important to obtaining insights.

On how bankers want AI insights delivered to them, 100% say they would want to get them via email, while 83% want them within their CRM system. Just 17% want AI-driven recommendations via mobile, highlighting how much of corporate FS remains a desk-based industry.

“The potential of augmented intelligence to support relationship managers with data driven lead sourcing and next best action recommendations is starting to gain real momentum,” says Miguel Rodriguez, VP, customer success, Squirro. “Investment banking as an example is highly competitive and anything that provides an advantage will be seized upon, although investment banks could use AI even more effectively by deploying it to enhance specific business processes.”

Want to learn more about how AI is upending traditional financial services? Register for Finextra's NextGen Banking London: the AI Revolution conference and hear how some of Europe's top banks are using the technology to radically improve efficiency, risk management and regulatory compliance, and customer service.

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