Digital and AI
Why is AI misunderstood in financial services?
Matt Riddall, SVP, Client Solutions · · 5 minute read
UK
Whether in business or social settings, everyone is talking about Artificial Intelligence (AI). Today, AI runs analytics while we sleep, it's our portable personal assistant and can even drive us into the office. However, at work, when we are thinking about its implementation, we sometimes associate it as a risk - or something that we fear could cause detriment to our business.
Matt RiddallSVP, Client Solutions, arum
In the current climate, we are more aware of risk than ever. COVID-19 has consumed our world. It is transforming the way that we live and work. Whether you're applying for a business loan, mortgage holiday or even just managing working around kids, it's has been a difficult time for everyone. And so your free time might be the best time to get to know AI and explore how it can help your business.
What is AI?
Simply put, Artificial Intelligence (AI) is the continuous adaptation of computers or computer systems to act on behalf of human intelligence. AI can replace human decision-making with automated alternative methods that are designed to learn and evolve over time.
How is the financial services industry benefiting from AI?
The financial services industry is a high benefactor of AI. It can utilise many of its advantages to save time, reduce costs and add value.
In 2016, over $5 billion was raised globally in AI venture funding deals for financial services. 6.5% of this has been in the UK and progress has not stopped since then.
Areas such as AI-driven customer chat rooms, data and credit risk analytics have all seen significant investment and growth, with companies reporting improvements typically 18 months post-implementation.
These are a few of the improvements seen post-implementation:
Enhanced business efficiency
These benefits allow companies to maximise resources and focus on the bigger picture.
Why the misconception?
As humans, we don't always fully understand the inner workings and logic of AI; there are almost infinite outcomes and complexity within deep learning that can make us feel uncomfortable. From virtual football to a self-run NHS, AI systems must be designed and executed in ways that are safe, protected, and ethical to protect your business from regulatory and ethical infringements.
Regulatory protection to aid adoption
The regulatory environment is trying to keep up with some of these issues, indeed there are some existing areas of regulation that can help. Data protection laws, customer protection, software maintenance are all helpful and important whether you implement AI or not.
Transparency of decision making is high profile, and AI is even being explored with regards to how it can help with this too, highlighting critical issues of AI, whether they are ethical or regulatory. The Information Commissioners Office has recently released an online consultation platform for the draft AI Auditing Framework Guidance. It gives advice on how to understand laws in relation to AI with recommendations and technical measures in order to mitigate any risks AI may pose.
So where can you find out more?
At arum we are always discussing new ways to implement artificial intelligence into our clients' systems and ways of working. And more importantly, we understand the risks and implications, so our clients and ourselves are always kept in check.
We are proud to offer a unique range of services like Robot Process Automation, Omni Channel Orchestration, Voice Analysis, Predictive Analysis and many more to your business.
About the author
SVP, Client Solutions, arum
Matt joined arum in 2008 and is SVP, Client Solutions. With almost two decades of experience across collections, recoveries and customer operations, he has supported hundreds of organisations, from retail banks including NatWest, HSBC and Lloyds Banking Group through to major utilities such as E.ON, Scottish Power and Thames Water. His expertise spans data, analytics, decisioning, technology and AI, helping organisations make better decisions, improve operational performance and navigate an increasingly complex technology landscape. Matt is particularly passionate about helping clients cut through market noise and identify practical solutions that deliver measurable value.
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