Artificial Intelligence is right here, right now in banking.
Chat Bots are ubiquitous in customer service. Don’t let the quaint nature of those chat bots fool you. AI is only getting more powerful – and at breathtaking speeds.
Check out this video on Google Duplex (https://youtu.be/D5VN56jQMWM).
Just a side note: this video was four years ago!
AI Sets New Records
Last year, on November 30th, Open AI publicly released its ChatGPT starting an AI movement breaking all records of engagement.
Just how fast? It took ChatGPT a mere five days to reach a million users.
Compare this to previous record holders and the time it took them to reach a million users:
- Facebook – 2 years
- Instagram – 2 years
- Pinterest – 4 months
- Angry Birds – 35 days
I’m sure there are plenty more examples, but you get the point. ChatGPT adoption is growing at blazing fast speeds.
Artificial Intelligence Will Astonish the World
In 1844, inventor Samuel F.B. Morse sent a telegraph message from the U.S. Capitol to a railroad station in Baltimore, Maryland. The infamous message— “What hath God wrought?”—was immediately telegraphed back to the Capital.
History was made. And it’s being made much faster and with way more depth and breadth than those good ol’ days.
Telegraph, telephone, television and the Internet reshaped the world and reshuffled our work, creating enormous efficiencies and tremendous wealth for all.
The world was stunned by each one of those inventions. To say AI will astonish the world is an understatement.
Artificial Intelligence has the potential to remove entire divisions of work from the human experience, eliminating whole work force sectors.
Here’s an example: it took me the proverbial 10,000 hours (Outliers by Malcolm Gladwell) of hard work, research, and experience to develop my expertise in bank technology. Below you’ll see an example below of what AI can do in seconds.
Artificial Intelligence is poised to do what people take years to achieve, and condense it to mere days and hours.
AI: The New Frontier in Banking is Here, Right Now
I’m wildly optimistic about AI and its impact on humanity.
I’m confident our children will form a lifelong symbiotic relationship with AIs. The partnership will have profound impacts on humanity, which today are unimaginable.
AI is moving so fast; within five years you will see significant and positive impacts to banks. AI has the potential to dramatically improve efficiency ratios, profitability, risk reductions, and customer experiences.
Here are some areas where AI is already being deployed and quickly learning. I will be writing more in-depth blog posts over the next few weeks on each one of these areas:
- Fraud detection: AI algorithms can analyze patterns in data and detect unusual activity that may indicate fraudulent behavior. AI will be both defensive by stopping fraud attempts and offensive by presenting fraud teams with well-discovered and articulated cases.
- Personalized customer service: AI chatbots and virtual assistants will provide personalized customer service, like my Google Duplex example, by answering frequently asked questions and assisting with basic tasks.
- Risk assessment: AI will analyze data to help banks assess the risk associated with lending decisions, such as evaluating a borrower’s credit worthiness (Imagine a commercial loan package prepared in minutes rather than days!).
- Systems & Process Testing: AI will transform these high-risk testing areas into mundane automated functions. Imagine an implementation where AI does the requirements, uses cases, scheduling, testing, and reporting.
- Improved efficiency: AI can help banks automate certain tasks, such as processing loan applications or detecting errors in financial records, which could lead to increased efficiency.
Overall, the adoption of AI in the banking industry has the potential to improve the customer experience and increase efficiency.
It does, however, raise concerns about job displacement and the potential for unintended consequences.
To prove my point, I asked ChatGPT to write a short article on how bad actors could use AI to commit bank fraud. It’s much better than I anticipated, making me a little queasy. Chatgpt (openai): https://openai.com/
How can bad actors use AI to defraud banks? The ChatGPT AI answer to my expert question:
ChatGPT answered my question in 5 seconds with the below statement:
“There are a number of ways in which bad actors could potentially use artificial intelligence to defraud banks. Some possible scenarios include:
Fraudulent transactions: AI algorithms could be used to generate fraudulent transactions that are difficult for banks to detect. For example, an AI system could be trained to mimic the behavior of a legitimate customer in order to bypass fraud detection systems.
Phishing attacks: AI could be used to generate highly convincing phishing emails or text messages that are designed to trick customers into divulging sensitive information, such as login credentials or bank account numbers.
Manipulating data: Bad actors could use AI to manipulate data in order to deceive banks or evade detection. For example, they could use AI to generate fake documents or alter financial records.
Social engineering attacks: AI could be used to impersonate bank employees or other trusted individuals in order to trick customers into divulging sensitive information or completing fraudulent transactions.
Overall, the potential for AI to be used for fraudulent purposes highlights the importance of banks having strong security measures in place to protect against these types of threats.”
The Bottom Line…
AI is right here, right now and is already impacting your bank. You can expect many new projects to integrate AI into systems, processes, and practices. We can also expect the shrinking of work areas as more work is taken up by AI. And that’s just the beginning…
I specialize in banking technology, deciphering the elements that work collectively towards progress – and building a roadmap for successful execution. How can I help you transform your organization as you prepare for the changes that lie ahead?
Reach out to me & we’ll setup a time to chat.