Banks could save billions of dollars by using technology such as automation and artificial intelligence, according to a study released Thursday by Accenture. By using technology to automate jobs or help employees at work, North American banks could save more than $70 billion by 2025, the study showed. Across the entire financial services industry, which includes banking, insurance, and capital markets, savings could be between $87 billion and $140 billion in the same time frame. "Massive social and technology change is creating a range of threats and challenges," for financial services firms, Accenture wrote. But, it also creates "the opportunity to unlock significant value through a new workforce, new ways of working, and new job roles."

Two converging trends have enabled forms of AI that can effectively mimic or replace human labor. On the one hand, specialized hardware has increased processing power, making it possible for AI systems to generate outputs in real time. At the same time, the amount of data available to feed those systems has skyrocketed, thanks to search histories, online photos, and more. Combine those two capabilities, and software engineers have the tools to create virtual assistants like Alexa, and automated filing services like Google Photos. So far, AI is best suited to discrete, repeatable tasks.

Chatbots, computer programs that typically use text-based live chat as an interface to carry out tasks for customers on behalf of the business, are emerging as an inexpensive way to introduce artificial intelligence (AI) in banking. New digitally savvy companies have found success attracting consumers with user-friendly offerings, while legacy banks are finding it difficult to invest in and adopt innovative products. To remain competitive, these large banks will have to adapt their traditional services by incorporating more robotics in banking that will attract more tech-savvy customers. Chatbots in banking are a digital solution that is relatively inexpensive to develop and maintain. For starters, chatbots require less coding than standalone banking apps.