July 17, 2018
A recent study of 34 major banks across several geographies (US, EU, Singapore, Africa, Australia, India) by MEDICI Team found that 27 out of these 34 banks have implemented AI in their front-office functions in the form of chatbots, virtual assistants, and digital advisors. Across these regions, some of the most prominent banks in this space are Bank of America, OCBC, ABN Amro, YES BANK, etc. Front-office applications have certainly seen a significant increase in intensity, scope, and adoption. In reality, however, the AI strategy in the US banking industry is far more diverse. Automation is one of the more explored areas of AI/ML application. The estimated global market potential of RPA is projected to be $8.75 billion by 2024.
Source: How Banks Are Using AI as a Tool for Transformation, MEDICI Research
All major banks in the US are experimenting with AI in one of the four sets of applications: front-office uses; back-office uses; trading & portfolio management in financial markets; and uses of AI and machine learning by financial institutions for regulatory compliance (RegTech) or by public authorities for supervision (SupTech). In Asia, AI could produce an economic value between $1.8 – $3 trillion a year by 2030, generated by the introduction of new product services & categories, cost savings arising from better products, lower overall prices, and improvements in lifestyles. While the two largest economies in the world are dominating global research and development in the artificial intelligence (AI) field, Credit Suisse expects China to come first in the race. RPA is expected to have a $6.7 trillion economic impact globally, a plan that will result in a 40-45% growth of global spending on technology.
In one of Provoke.fm’s podcasts, Brett King, JP Nicols, and Philippe Van Fraechem (GM, North Europe & Worldwide Program Director, EFMA) discuss where the banks are with the adoption of AI, emphasizing the role of customer experience and customer success in bringing the advanced technology into customer-focused areas – both in the banking industry and in the tech/internet world – and what we can hope for them in 2018.