Will generative AI be able to boost the financial services sector? – A prefix meaning environment

Over the past year, the main topic in conversations with bank and insurance company managers has been generative AI. With Microsoft, the scope of these conversations goes beyond the vision achieved through the partnership with OpenAI, focusing on the practical application of business cases applicable to this sector. From systematically introducing this technology based on Azure OpenAI to enhancing productivity with co-pilots, always with unique protections in terms of compliance, data security and the business as a whole.

The expectations speak for themselves: 70% of employees in a business environment are available to delegate work to AI and a notable expectation in searching for information, summarizing and organizing activities; 55% increase in software development speed with GitHub Copilot; 60% of digital leaders who recognize the importance of AI as a differentiator for business growth by adopting intelligent applications capable of natural language-based interactions and providing progressively improved “data-driven” personalized experiences.

These are signs of the beginning of a new era in financial services. The enthusiasm in this sector is almost palpable, unlike any reaction to other emerging technologies that we have seen emerge over the past two decades. It cannot be said that companies in this sector are not familiar with artificial intelligence. “Traditional” AI – or what we now call AI-based solutions before the arrival of generative AI – has been adopted in sophisticated ways across the industrial value chain for several years. But the new era of generative AI is different, and its potential is enormous.

The reality we are seeing with our clients in Europe ranges from generating very concrete proofs of concept, through large-scale initiatives to define Use cases Business, even created multidisciplinary teams of more than 100 people, including Microsoft and other partners, to implement solutions based on generative AI. In Portugal, we can say that 8 out of 10 of our customers are using Azure OpenAI services, in some cases with access to the most advanced model, GPT-4, ready to scale successful proofs of concept, and planning to retain processing capacity in the short term.

It is true that we are still taking our first steps in this field, but the overall dynamic has been great. Report from Mackenzie It states that the technology could generate added value of an additional $200 billion to $340 billion annually, if use cases are gradually implemented in the banking sector. This stands out as the sector with the greatest potential, right after the high-tech sector. But also in the insurance sector, whose potential is estimated at $50-$70 billion, there is a pace that indicates a greater transformation.

Opportunities created by generative artificial intelligence

But what will change (or is already changing) with the adoption of generative AI in these sectors?

starting from Back officeThe process of “gaining trust” will focus on technology, and the most prominent applications are the following:

1. real time fraud detection,
2. New training for anti-money laundering jobs / Know your customer,
3. and a high level of productivity in credit/insurance underwriting processing and granting.

But it is in the second phase that the transformation will bring the greatest benefits (and real differentiation in the entrepreneurs' business). reception desk In particular, in customer interaction functions:

1. Providing products and services tailored to customers' needs and behaviours,
2. Evidence of contracting/subscribing to these products or financial advice from virtual assistants with “human experience”,
3. and value-added content in financial planning functions, transaction visibility and associated alerts.

In these blocks of the value chain, semantic search and natural language interfaces allow customers and intermediaries to extract accurate information from massive amounts of data.

What are the next steps?

With generative AI, we expect an incredible wave of innovation in the financial sector that will not only change the way businesses operate, but will also open up new markets and revenue opportunities. To do this, it will be necessary to take the following steps into account:

Create engaging experiences with your co-pilots. New applications, or even those that already exist, will begin to incorporate generative AI, and co-pilots will likely become indispensable in the daily experiences of employees and customers. The co-pilot will be there to support them and work with them under the command of the humans.

Increase business impact using data. Artificial Intelligence is expected to revolutionize the process of converting data into information and actions. As a result, it promises to free up employees to focus more on creating value for their companies and customers.

Enabling more sophisticated use cases. Plugins will also be crucial for the financial sector as developers and independent software vendors (ISVs) look to provide solutions to enhance large language models, targeting use cases such as quantitative analysis.

Enhance business value with compatible solutions. With the help of tools like Microsoft's Responsible AI Dashboard and Azure AI Content Safety, companies will be able to develop their initial tests before moving into production, and create the right safeguards to meet internal and regulatory requirements.

In short, regardless of your starting point or ambition, in order to thrive in this new era, it will be necessary to embrace it Crawling, walking and running Who are considering generative AI as a way to achieve additional operational efficiency gains at an early stage, and evolve towards more transformative ambitions over time. What we can guarantee is that this technology will make a huge difference and start boosting the financial services sector.

Note: The author does not write according to the new spelling convention.

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