Picture this: US-based banking and financial services major Wells Fargo started piloting an AI-driven Facebook chatbot early last year. It responds to queries from customers, like the current balance in their accounts, and even helps them locate the nearest bank ATM – all through Facebook Messenger. That’s just one example. AI has emerged as a powerful disruptor in the Financial Services industry. And most players have already hopped on to the AI bandwagon. In another couple of years, widespread adoption of cognitive systems and AI is expected to boost worldwide revenues. An IDC report predicts that the revenue growth could touch $47 billion in 2020.
Some of the key areas where most AI investments are expected to happen over the next few years are:
- A relentless focus on customer centricity – acquiring and retaining customers, providing innovative products and a better, holistic experience to customers
- Improvement in operations, cost management and focus on profitability
- Risk management, surveillance and fraud detection
- Exploring new ways of generating alpha
- Underwriting and claims management that are more specific to the insurance sector