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September 18, 2023

AI in Financial Services? Rest assured it’s here to stay!

Marianna Vilardi

Senior Marketing Content Creator

Reading time: 5 min


Our industry is navigating digital transformation, and at its core is the integration of Artificial Intelligence. To gain insights into the industry’s perspective, we conducted a brief LinkedIn survey among professionals. The results sparkled with insights, with a significant majority believing that AI is not just a passing trend but a transformative force.

AI’s growing influence

Our brief survey revealed that 44% of respondents believe AI is here to stay, while another 40% consider it a differentiator. These statistics underscore the industry’s growing reliance on AI as a long-term strategy. AI’s ability to automate mundane tasks, streamline operations, and enhance decision-making processes has made it an indispensable tool for financial institutions.

According to the majority of respondents (56%), one of the most significant advantages of AI is its ability to automate repetitive and time-consuming tasks, thus enhancing processes. Previously, financial institutions had to rely only on manual data entry and analysis, which may be error-prone but also consumed a significant amount of time and resources. AI-powered solutions have stepped in to streamline these processes. Tasks like data entry, reconciliation, and report generation can now be handled by AI, reducing the risk of errors and allowing human employees to focus on more strategic and value-added activities.

Automating compliance comes just after in terms of advantages. 22% of respondents agree that AI can assist financial institutions in automating regulatory compliance processes, ensuring adherence to complex regulations, which is indeed a critical aspect of our industry. For example, AI-powered systems can analyse and monitor transactions, customer data, and other relevant data to identify compliance risks and flag potential violations.

Improving personalisation and reducing risk and cost were ranked similarly. 11% of respondents saw these as the greatest potential for AI.

For instance, personalised customer communication is another hallmark of AI in financial services. Tools analyse text and speech from consumer interactions, leading to the implementation of ‘chatbots’ on websites. Generative AI allows for personalized communication in various forms, from text to multimedia, in any language. Machine learning algorithms analyse customer data to provide personalised financial advice and solutions tailored to each customer’s needs.

Also, it seems AI’s analytical capabilities play a crucial role in risk management. By analysing vast amounts of data, AI can identify patterns and potential risks, helping financial institutions make informed decisions. Additionally, automation reduces operational costs, making AI an attractive option for financial organizations.

Challenges and Opportunities on the horizon

Although potential benefits are many, people still detect factors that may affect their consideration when it comes to the implementation of AI. One of the most significant considerations is the high cost associated with such technology, cited by 21% of respondents. These costs are acting as a deterrent, preventing many firms from embracing AI across various aspects of their organisations. Another concern, mentioned by 32% of those surveyed, is the increasing threat of cyberattacks. That’s because, in the post-GDPR era, safeguarding client data has become paramount, and the integration of AI must ensure data security remains intact.

Lack of confidence in AI technology also ranks high, with the same percentage of respondents expressing reservations. This may stem from AI altering or replacing jobs, concerns about the quality of data used in AI algorithms, and doubts about the integrity of the algorithms themselves. Finally, 16% of respondents are concerned about maintaining strong client relationships; we see AI as a potential solution to complement human abilities rather than replacing them. Indeed, by automating repetitive tasks, AI can free up financial advisors’ time, allowing them to focus on building more personalised, valuable relationships with clients. To fully harness these benefits, it’s essential for banks to embed AI at every stage of the customer relationship, ensuring a seamless blend of human expertise and technological innovation.