In the six decades since the term “Artificial Intelligence” (AI) was conceived, it has evolved from an other-worldly idea that machines could “think,” to a technology that is pervasive and penetrating every aspect of daily life in countless practical applications. It’s not surprising then that consumers have begun to demand this type of experience across the board, especially from their banks and other financial services providers. The industry has responded in turn, increasing investments in AI-related startups and firms in India and across the world. All the major stakeholders of a bank are seeing significant benefits of AI deployment, ranging from an enhanced customer experience and a higher operational efficiency to substantially lowered costs from various banking processes. But along with these multiplying benefits come critical challenges that are, for now, inherently associated with this evolving technology, and need to be treated with extreme care.
A bank’s strategy for a successful deployment must holistically ensure top management level buy-ins, a well-planned governance structure, and prioritized implementation of AI use cases that offer maximum benefit with minimal pain. The customer impact as an outcome must always remain as the cornerstone of the bank’s AI journey, instead of myopic targets of return on investment (ROI). Lastly, there is immediate need for CXOs to realize that employee participation at organization level is a critical success factor if the bank wishes to fully leverage the AI revolution.