2017 Will be a Year of AI and Its Accelerated Adoption
“As the capabilities of AI evolve, FinTech companies will harness this technology to make better decisions and offer improved solutions. They’ll make use of predictive analytics to break down big data and analyze large volumes of consumer information. APIs will allow for seamless integration and partnerships between established banks and FinTech startups. This will create an enhanced user experience, with more intuitive interfaces, assisted customer interactions and robo-advice,” experts from YapStone, processing platform that powers payments for global marketplaces and large vertical markets, predict.
Artificial intelligence (AI) is expected to bring inevitable changes into bank-customer touchpoints and FinServ companies’ value chains. Certain institutions are already working on employing AI in banking solutions – Bank of America, Axis Bank, RBS, Emirates Islamic, Digibank by DBS, Outbank, and much more. Financial institutions are also actively involved in financing AI startups.
Online lenders, underwriters, RegTech, InsurTech, and e-commerce companies have paved a way for AI to reshape cross-industry value chains. Bright entrepreneurs have already brought AI to agriculture, the oil and gas industry, radiology, financial technology, security and more. The largest and most successful companies in the world strongly believe in AI and invest substantial time and resources to harvest its potential.
Increased efficiency and accuracy of processes powered by AI allow companies to enhance customer service, reshape organizational structures to adapt to new business models. Some estimates suggest that the total global market for robots and artificial intelligence will reach ~$153 billion by 2020, and the adoption of these technologies could improve productivity by 30% in some industries.
Moreover, published mid-January, a report from Infosys based on a survey of over 1,600 senior business decision makers at large organizations across the world, brought up promising estimates on various aspects of business efficiency improvement with AI adoption. Over half of surveyed (51%) believe that cost reduction is the area where AI is delivering first, while the benefits experienced so far include automating processes and tasks (46%), cost savings (44%), increasing productivity (44%), and increasing revenue (39%).
The study demonstrates that AI can play a significant role in business growth, create opportunities for people to do more than what their current job and education enables, and drive long-term macro-environment benefits. Decision makers believe that AI will bring out the best in their organization’s people (65%), and feel it can deliver positive societal (70%) and economic (76%) change.
The change, however, is tightly corresponded with the ability to distinguish the most interesting and successful cases of AI adoption and understanding of the landscape of forward-thinking teams. As the AI-focused community moves forward and expands, it becomes increasingly complex to find the right partner. Meanwhile, only balanced and thought-through choice of partnerships, vendors, can ensure beneficial outcomes both for collaborators and the industry overall.
How FinServ companies can navigate in a complex startup ecosystem
Regardless of the doors that technology opened to organizations across industries, a successful venture largely depends on the right choice of the most suitable vendors, partners, challenges, supporters, accelerators and VCs who will be able to take a startup along the long road as well as allow industry heavyweights to successfully navigate in a complex environment. In the variety of opportunities, there is a criterion we believe to be the most reliable in making a choice – experience.
Throughout the three years of dedicated ongoing research in the financial technology space, the LTP team has explored, defined and shaped the global startup ecosystem unlike anyone else. Eventually, LTP established the foundation to build MEDICI – the ultimate FinTech platform for collaborative innovation that accumulated data on the international ecosystem of more than 6,000 technology startups (and the number is growing) disrupting FinServ industry. We have written about and covered a wide spectrum of startups in our articles on LTP, and our global team has extensive experience interacting with startups and exchanging ideas on a daily basis.
One of the most recent initiatives launched by MEDICI in partnership with Generali, Accenture, Mediolanum, CheBanca!, Wells Fargo, ING and BNP OpenUp, is Top 21 - Artificial Intelligence - Enabling Technologies Startups Transforming the FinServ Value Chain Award.
The MEDICI Top 21 – AI Startups Transforming the FinServ Value Chain Award is launched to recognize the best AI startups in the world selected from thousands of applications from 55+ countries. We are always looking for innovative solutions, the next big things and the most promising players. More about the award and how to apply can be found here.