Artificial intelligence (AI) is one of the most impactful technological revolutions the world has witnessed[1]. Customers today are increasingly exposed to advanced technologies such as AI-enabled chatbots[2] and intelligent voice assistants[3] like Apple Siri, Google Assistant, and Amazon Alexa, making personalization a high priority for incumbent banks.
Today, AI enables financial institutions to solve many critical problems[4], thereby saving money and increasing the efficiency of the workforce. By deploying AI-based solutions, banks can improve the outcome in various dimensions such as customer service, risk management, cross-sales, etc. A MEDICI research study of 34 major banks[5] across several geographies (US, EU, Singapore, Africa, Australia, and India) found that 27 out of these 34 banks have implemented AI in their front-office functions in the form of a chatbot, virtual assistant, and digital advisor.
The capability of AI is enormous when it comes to enabling transformational business outcomes and bringing exceptional values to banks. Intelligent automation has the ability to replace repetitive manual tasks, improve customer experiences[6], and develop customized products, thereby driving the growth, profitability, and sustainability of the banks.
Worldwide spending on cognitive and AI systems was estimated to reach $19.1 billion in 2018[7], an increase of 54.2% over the amount spent in 2017. With industries investing aggressively in projects that utilize cognitive/AI software capabilities, IDC forecasts cognitive and AI spending to grow to $52.2 billion in 2021 and achieve a CAGR of 46.2% over the 2016–2021 period.
According to IDC, much of the $3.3 billion spent by the banking industry in 2018 went toward automated threat intelligence
