Financial services firms are helping lead the way in adopting artificial intelligence, with banks expected to spend $5.6 billion on AI solutions in 2019, second only to the retail sector, according to IDC.
And the fruits for finservs could be considerable: McKinsey Global Institute predicts AI and machine learning could generate more than $250 billion in value for the banking industry.
Still, many financial firms remain cautious on artificial intelligence, thanks to potential financial, reputational, and regulatory fallout. Here, gaining greater insights into how AI systems arrive at decisions is key.
In the meantime, financial services companies seeking competitive advantage are rolling out AI systems to support customer service operations, undertake risk analysis, and overhaul marketing and sales processes. Following is a look at how several financial services firms are putting AI to work.
Streamlining customer service
Synchrony runs credit cards for many major brands, including Gap and Old Navy, Amazon, JC Penney, Lowe’s, Sam’s Club, and American Eagle, servicing more than 80 million active consumer accounts. That’s a lot of customers who might need help with their cards, such as reporting fraudulent transactions.
Two years ago, the company went all-in on artificial intelligence and has already hired more than 170 data scientists, all while launching an emerging technology center at the University of Illinois. Like many financial services companies, Synchrony’s key deployment of AI and machine learning is in chatbots.