If you are looking for an answer to the question What is Artificial Intelligence? and you only have a minute, then here's the definition the Association for the Advancement of Artificial Intelligence offers on its home page: "the scientific understanding of the mechanisms underlying thought and intelligent behavior and their embodiment in machines."
However, if you are fortunate enough to have more than a minute, then please get ready to embark upon an exciting journey exploring AI (but beware, it could last a lifetime) …
Today banking organizations are more comfortable with a faster pace of innovation, using data and analytics more extensively. Digitization leads banks to be more innovative in targeting, expanding services, re-configuring delivery channels, and integrating payments. Artificial intelligence (AI) creates entities performing or thinking similar to humans. The technology is complex, and algorithms are effectively facilitating the making of critical decisions by machines in the banking sector. The combination of data science, machine learning tools, and machine learning platforms are fueling the transformation in the banks.
While this could be a source of worry for the banking workforce, in reality, there should be little concern. Rather than acting as a replacement for employees, banks instead seem to be looking at AI as a tool to help release pressure points and empower the workforce with Accenture even predicting that banks that deploy AI wisely will see a 14% increase in jobs. In 2016, Santander became the first UK bank to launch voice banking technology. Of course, since then a large variety of global banks have adopted this technology in one way or another, suggesting that banks are looking at utilising AI beyond chatbots. In fact, with Mariano Belinsky, managing partner of Santander InnoVenture, discussing natural language processing, it seems to only be a matter of time before virtual assistants come into use.
CIOs across all industries have Digital Transformation as one of their key agenda items. There is a strong linkage between Robotic Process Automation (RPA) and Digital Transformation. RPA can greatly support organizations in achieving the end goal of digital transformation through automation. The major question is will RPA be able to do the same thing that iPhone did to the smartphone industry? Most of the key decision makers feel that it will.
Despite recent uncertainty in the financial markets, the economic outlook for the banking industry remains positive. Regulatory forces are encouraging innovation and new digital technologies provide opportunities to improve customer experiences. There are strong indications that banking organizations worldwide understand the primary trends impacting the industry as well as the actions that are needed to respond to competitive pressures. The question is whether banks and credit unions will prioritize the deployment of human and financial resources to respond to these changes. Will legacy financial institutions embrace change, take appropriate risks and disrupt themselves to meet the needs of consumers, small businesses and corporate customers.
A common goal among companies in today's data-driven world is to become smarter--to know where the market opportunities lie, where supply chain logjams are and where process improvements can be found. Data science has been the fuel behind this trend, and now data science is itself becoming smarter. Thanks to astonishing advancements in artificial intelligence (AI) and its sub-segments machine learning and deep learning, companies are achieving new levels of efficiency in data analysis that impact their entire business. The rising tide of AI adoption across industries will drive significant growth in the next decade, with AI software revenue set to reach almost $90 billion by 2025. AI's presence is tantalizing to data scientists and business managers alike who seek to let machines do the number crunching to make the business smarter on a holistic level.
Money matters to people and businesses alike and banks are the institutions which help them sense, comprehend and act in terms of making monetary decisions wisely. Banks have been there for us in times of need and have evolved themselves from time to time, transforming from a traditional paper-ledger based to computerized core banking. Today, this industry has ushered in the facilities of the internet and mobile banking for the consumer. There is no other sector that is more focused on adopting innovative technologies like Artificial Intelligence (AI), as much as banks. Literally, every consultancy has derived their own research citing how AI would be the next big thing in banking and they're all bullish on its prospects.
The global banking sector is becoming both more strategically focused and technologically advanced to respond to consumer expectations while trying to defend market share against an increasing array of competitors. A great deal of emphasis is being placed on digitizing core business processes and reassessing organizational structures and internal talent to be better prepared for the future of banking. This transformation illustrates the increasing desire to become a'digital bank'. The importance of innovation and developing new solutions that take advantage of data, advanced analytics, digital technologies and new delivery platforms has never been more important. We are seeing organizations innovate in targeting, expanding services, re-configuring delivery channels, delivering proactive advice, integrating payments and applying blockchain technology.
Throughout 2018, artificial intelligence (AI) has solidified itself as a part of the global workforce, moving beyond glittery marketing programs and simpleton bots to real value-adds in terms of customer experiences and operational efficiency. In 2019, I believe we're going to see AI continue to grow and in a big way. Customer service is now a critical differentiator and the catalyst for customer loyalty. The stakes are higher than ever: 33% of Americans say that one instance of poor service is all it takes to switch to another company for a product or service. Organizations across industries are starting to see just how AI can be used to meet customer's increasing demands for instantaneous support and personalized engagement on the channels that matter to them.
ICICI Bank customers will now to able to put money lying idle in savings bank accounts to better use with the help of an investment advisory platform powered by software robotics and AI (artificial intelligence). The platform, dubbed Money Coach, is the latest in a long line of products and features that India's largest private sector lender has been rolling out over the years as part of its digital banking initiative. "Money Coach will manage the entire investment journey of a customer from building an investible corpus to investing in recommended portfolios," said the bank's chief technology and digital officer Madhivanan Balakrishnan told TechCircle during a media interaction recently. The launch of the platform also marked two decades of digital banking for the lender. It claims that it was the first to launch internet banking in 1998.
The National Australia Bank (NAB) is diving head first into its public cloud-first strategy, making plans to not only shift a few hundred apps to Amazon Web Services (AWS), but also to consolidate all of its information into a single, real-time data lake as it lays the foundation for sending core banking to the cloud. Speaking with media during AWS re:Invent, CIO at NAB Yuri Misnik, said his bank expects the cloud is where its core banking functions will eventually be run. "We'll start to look at core banking in the cloud -- we expect it to happen, but it obviously depends on lots of moving parts and regulators, etc," he said. When asked if there are some workloads that won't be moved to the public cloud, Minisk said NAB is being "very pragmatic". "We will do whatever makes sense for us technology wise and business wise," he said.