By Anuj Bansal, Director, Global Services, Fiserv
Artificial Intelligence (AI) is often perceived as a novel development, but the ambition to create an artificial brain has long been embedded in human history. For decades, technological limitations hindered the realisation of AI’s full potential. Efficient databases for structured data storage and powerful computational capabilities were missing, constraining early AI efforts. However, recent technological advancements have transformed this landscape, enabling us to harness AI’s true power and pushing it into the spotlight it has long deserved.
Today, practical AI implementations are not just possible but have become commonplace. A prime example is Conversational AI, which exemplifies the significant strides made in this field. Organisations that recognise and leverage AI’s capabilities are poised to emerge as leaders. Investing in AI not only promises substantial time and cost savings but also fosters enhanced customer satisfaction through more efficient and personalised experiences.
In the realm of customer service, AI is already reshaping interactions. Consumers increasingly prefer engaging with chatbots over human agents due to the speed and consistency bots offer. Unlike human agents, who can vary in their responses and behaviour despite extensive training, AI-driven chatbots deliver uniform and predictable interactions, enhancing the overall customer experience.
The financial technology (fintech) sector stands to gain immensely from AI, particularly in processing and analysing the massive volumes of data generated daily. Estimates suggest that approximately 2.5 quintillion bytes of data are created each day, a figure that continues to grow exponentially. Modern fintech companies are diligently developing AI models to manage and interpret this data. Those that succeed will lead the market, capitalising on AI’s ability to detect patterns and insights that were previously beyond reach.
Historically, bankers faced significant challenges in analysing a few suspicious accounts or transactions to detect fraud. Today, advanced AI models can scrutinise millions of accounts and transactions in parallel, identifying suspicious activities and raising alerts promptly. For instance, anti-money laundering AI bots can detect potentially fraudulent transactions early, preventing significant losses and regulatory penalties. In 2023 alone, fintech companies were fined $6.6 billion for failing to comply with anti-money laundering regulations, highlighting the critical role AI can play in regulatory compliance.
Beyond fraud detection, AI models are revolutionising financial forecasting, credit risk assessment, and personalised customer recommendations. By analysing transaction data, AI can suggest investment strategies, offer money-saving tips, and even flag unusual transactions that may require customer attention. Such capabilities not only enhance financial management but also build customer trust and loyalty.
AI’s potential extends to comprehensive measurement of economic activities, such as indices built on payment processing data that reflect consumer spending patterns. These indices are entirely data-driven, providing accurate and actionable insights that are delivers to decision makers without latency. This practical application of AI underscores its value in guiding businesses and policymakers alike.
However, the increased reliance on AI also raises significant concerns about user privacy. As organisations collect more data to refine AI models and customise customer interactions, they must navigate the fine line between leveraging data and protecting user privacy. Balancing these priorities is crucial to maintaining trust and ensuring ethical AI use.
In conclusion, AI’s journey from a distant dream to a tangible reality marks a pivotal shift in technology and its applications. While AI has always been part of the technological landscape, recent advancements have magnified its impact, allowing us to perform sophisticated analyses and make informed forecasts with unprecedented precision. As we continue to capture and analyse vast amounts of data daily, the true potential of AI unfolds, promising a future where technology enhances every aspect of our lives.