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The advent of ChatGPT and similar products has reignited a decades-long debate about whether advanced automation, backed by artificial intelligence, will usher in the “end of work”, which could lead to mass layoffs because Businesses replace humans with machines.
The artificial intelligence (AI) hype cycle has been building since the 1970s. And with each advance, the chorus begins again about the dangers to the workforce posed by technology. But many of those fears have yet to come to pass. For example, a 2013 study by Oxford professors Carl Benedict Frey and Michael Osborne estimated that 47% of US jobs would be eliminated by technology over the next 20 years. Of course, this has not happened. In fact, the number of jobs actually increased by 25%.
However, it cannot be denied that with the growing capabilities of large language models such as ChatGPT and other AI applications, the emerging technology will penetrate every part of corporate America. Soon, common business processes like customer support will be completely automated. And companies will be able to increasingly use data to create hyper-personalized customer experiences.
This should be welcomed. Only by changing our mindset about the coming AI revolution will banks, their employees and their customers be able to reap the benefits of the coming decade of innovation.
change the narrative
For too long, automation has been discussed as a task killer rather than a time maker.
This is especially true in financial services. In fact, bank chief executives regularly talk about the hundreds of thousands of human jobs that could be lost to robots. Understandably, this is creating new concerns among workers about the future of their roles.
What’s lost in the discussion is how much employees will benefit when algorithms can automate mundane workflows that take away our ability to tackle the larger, more intensive projects that humans are built to do.
For example, it is becoming possible to automate many of the monotonous tasks that monopolize an accountant’s time every day, such as data entry, freeing them to spend more time analyzing and interpreting information. Companies will also not have to think much about cyber security, as many modern IT platforms provide all the necessary bank-grade security capabilities.
As areas such as customer onboarding and support are put on autopilot as a result of advanced chatbots, bank staff will be able to devote more time to creating a more dynamic and personalized customer experience using all the data now accessible as a result of modern IT infrastructure. Used to support AI and machine learning.
unlocking the power of data
Creating a personalized customer experience is difficult for banks because the data that is needed to power machine learning models is stored in many different places. For example, traditionally, all interactions on a mobile application may flow into one storage center, while all data from a website or customer service channel flows into another.
To create unique profiles of customers that power more seamless interactions, banks must have continuous access to high-quality and comprehensive data sets from every different touchpoint that people have with their financial partners.
New, cloud-based technologies make it possible to access data in any interaction with the bank’s service. By aggregating all the information from multiple sources in one area, banks will now be able to create those ultra-personalised experiences. Such a system would also make it possible for financial institutions to begin using predictive analytics to help customers make informed investment decisions, along with other use cases.
It doesn’t stop here. Better access to the data will help banks better detect fraud, improve their credit-risk assessment frameworks, and use criteria beyond credit scores – such as spending and bill payment patterns – to evaluate applicants for loans. will start using.
As machines begin to take over the many menial tasks that often dominate our days, priorities in the financial industry will shift. Our human capacity for empathy and intuition, as well as the emotional connections we are able to make with others, will become increasingly valuable. These attributes enable us to maintain a long-term view of the Bank’s progress and mitigate potential problems.
There is no need to fear the rapid rise of AI. Instead, banks and their employees should take the time to understand the technology and learn how it can be used to make their operations easier. Like web browsers and mobile phones before them, AI holds the promise of completely changing the way we work and connect with each other. We just have to give it.
Yogesh Mulvani, RVP of Technology at Backbase.
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