The global banking industry is witnessing accelerated growth in terms of increasing adoption of digitization, rising use of AI enabled solutions and rising digital transformations. The opportunities to implement AI solutions across the finance industry are increasing with time and changing circumstances. Banks and other financial institutions are highly aware of the benefits offered by these AI solutions. The infusion of AI solutions is one of the latest trends in the banking industry. The banking industry generates a huge amount of data and AI solutions will help in connecting the dots between various data points and would alter the approach of acting with their users, therefore, enhancing the overall customer experience. Certain AI solutions have already gained a lot of popularity across banking institutions.

Artificial Intelligence (or AI) is already being widely deployed across industries, sometimes in ways you wouldn't even have imagined. The financial sector, which is heavily regulated, may not seem like an industry that would be poised to harness cutting-edge technology. But with the right planning, regulatory experts, and smart selection of use cases, AI can be put to work for the good of the employees and customers. AI in banking and finance can also lead to huge cost savings, within different business units or channels. There are three main channels where banks can use artificial intelligence.

Discussions, articles, and reports about the AI opportunity across the financial services industry continue to proliferate amid considerable hype around the technology, and for good reason: The aggregate potential cost savings for banks from AI applications is estimated at $447 billion by 2023, with the front and middle office accounting for $416 billion of that total, per Autonomous Next research seen by Business Insider Intelligence. Most banks (80%) are highly aware of the potential benefits presented by AI, per an OpenText survey of financial services professionals. In fact, many banks are planning to deploy solutions enabled by AI: 75% of respondents at banks with over $100 billion in assets say they're currently implementing AI strategies, compared with 46% at banks with less than $100 billion in assets, per a UBS Evidence Lab report seen by Business Insider Intelligence. Certain AI use cases have already gained prominence across banks' operations, with chatbots in the front office and anti-payments fraud in the middle office the most mature. Banks can use AI to transform the customer experience by enabling frictionless, 24/7 customer interactions -- but AI in banking applications isn't just limited to retail banking services.

Most banks (80%) are highly aware of the potential benefits presented by AI, per an OpenText survey of financial services professionals. In fact, many banks are planning to deploy solutions enabled by AI: 75% of respondents at banks with over $100 billion in assets say they're currently implementing AI strategies, compared with 46% at banks with less than $100 billion in assets, per a UBS Evidence Lab report seen by Business Insider Intelligence. Certain AI use cases have already gained prominence across banks' operations, with chatbots in the front office and anti-payments fraud in the middle office the most mature. Banks can use AI to transform the customer experience by enabling frictionless, 24/7 customer interactions -- but AI in banking applications isn't just limited to retail banking services. The back and middle offices of investment banking and all other financial services for that matter could also benefit from AI.

There seems to be ongoing confusion between machine learning (ML) and artificial intelligence (AI). While often used interchangeably, the reality is that they're not the same. In my previous article, I covered ML and what to consider before investing in these solutions, so now I will focus on AI. Looking more closely at AI, there are two types. General AI is the representation of general human cognition in software.

Discussions, articles, and reports about the AI opportunity across the financial services industry continue to proliferate amid considerable hype around the technology, and for good reason: The aggregate potential cost savings for banks from AI applications is estimated at $447 billion by 2023, with the front and middle office accounting for $416 billion of that total, per Autonomous Next research seen by Business Insider Intelligence. Most banks (80%) are highly aware of the potential benefits presented by AI, per an OpenText survey of financial services professionals. In fact, many banks are planning to deploy solutions enabled by AI: 75% of respondents at banks with over $100 billion in assets say they're currently implementing AI strategies, compared with 46% at banks with less than $100 billion in assets, per a UBS Evidence Lab report seen by Business Insider Intelligence. Certain AI use cases have already gained prominence across banks' operations, with chatbots in the front office and anti-payments fraud in the middle office the most mature. In this report, Business Insider Intelligence identifies the most meaningful AI applications across banks' front and middle offices.