Artificial intelligence turns critical for banks facing nimble fintech rivals

The most visible examples of AI, however, are the customer service rendering digital assistants, and chatbots such as Erica, aLVin, Eva, and MyKai, which are becoming familiar names to banking consumers. It has taken 50 years since the launch of Eliza--the first chatbot to mimic human conversation – for the technology to evolve to its current state, where its natural language processing ability is strong enough to answer queries, respond to voice commands, render services, make recommendations and initiate actions. Our recent report titled'Amplifying Human Potential: Towards Purposeful Artificial Intelligence' indicates that AI adoption is on the rise and by year 2020 it will contribute, 39% increase in revenue and 37% decrease in operating costs for businesses. AI is also being deployed by banks in non-customer facing tasks like credit risk management, where machine learning algorithms identify repayment patterns and predict the chances of default.