AI’s Impact on Financial Institutions: Opportunities and Challenges
Artificial intelligence (AI) has reached a significant inflection point, poised to revolutionise how people interact with technology in ways we can’t yet fully comprehend. The exponential speed of AI development and adoption is disrupting every sector of society, potentially making our current world almost unrecognisable within a decade.
The AI Landscape
- Early Adopters: Enthusiasts eager to learn and experiment with AI’s potential to solve existing problems and explore new possibilities.
- Skeptics: Those who remain complacent, believing AI is just a passing fad.
- Profiteers: Individuals and organisations exploiting the AI hype for financial gain, often by exaggerating its capabilities or potential dangers. These actors may:
– Oversell AI’s “magical” properties without substantiation
– Spread fear about AI’s supposed existential threats
– Launch products or services with inflated claims about AI integration
– Capitalise on market trends through speculative investments or misleading marketing
While AI can provide benefits and efficiency for various business operations, significant dangers remain in ceding decision-making and control to AI systems.
Geniusto’s Approach: AI Lab
Geniusto has launched AI Lab to study the potential benefits of judiciously using artificial intelligence in certain areas of our product and business operations.
Our goal is to deploy AI in a carefully considered manner where we believe it can benefit our customers and our operational efficiency.
Our Philosophy
While AI is currently the ‘flavor of the month’, we serve an industry that is inherently conservative and risk-averse, as it should be. Geniusto doesn’t jump onto bandwagons merely to claim AI integration. Instead, we take an intelligent approach to better understand how to extract value from this technology for our customers, employees, and investors.
Challenges in Financial Services
Banks and other financial services businesses are highly regulated and accountable to both customers and regulators. Deploying AI for decisions regarding customer credit status, risk profiles, or potential political associations could open institutions to civil suits and reputational risks.
Example Scenario
Imagine a high-net-worth individual is erroneously flagged by an AI system, resulting in a blocked payment. If a regulator requests the reason for this action, the institution’s response of “We don’t know, the AI decided” is unacceptable. This scenario demonstrates why financial institutions must approach AI implementation with caution, ensuring transparency, explainability, and human oversight in all AI-driven decision-making processes.
For this reason, amongst others, Geniusto AI Lab has been established to ensure that our deployment of AI in the near future will be meaningful and transparent driving value for all stakeholders.
Geniusto AI Lab First Projects
Here are some of the projects that we are currently studying and trialing.
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Product Testing: AI is an ideal tool to analyse code and rapidly search for errors and make suggestions for optimal code structure. Deployment of AI in this area will help to increase product quality and speed of delivery whilst minimising bugs and support costs.
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Report Writing: Deploying an AI-powered report/dashboard tool for customers. Users will be able to use natural language to query data, while AI assembles reports and dashboards on the fly. This will significantly benefit bank operators and compliance auditors.
Geniusto has always focused on providing financial institutions with the best possible toolset to manage complex transactional business processes efficiently and compliantly.
By carefully deploying AI in select processes, we aim to take our customers to the next level, empowering them to compete at the highest level in the rapidly changing global payments environment whilst ensuring their long-term success and profitability.
Contact Geniusto today to learn more about the Geniusto [GO] Digital Banking Suite and stay tuned for the latest news on our upcoming AI developments and launches.
