Robust AI-based Banking of the Future

Robust AI-based Banking of the Future

By CFO Tech Outlook | Wednesday, April 24, 2019

AI has the potential to transform customer experiences and to develop entirely new banking business models. To achieve the highest level of results, human and machine collaboration will require training and reassessment of the future of work. Digital technologies and AI are transforming all industries, and these changes affect the way back offices operate, the delivery of services, as well as the banking revenue. The desire to modernize with digital technology and AI for most organizations is to reduce costs, increase revenue, and wanting to improve consumer satisfaction. There is evidence that both humans and machines will achieve much more when AI is combined with human logic, creativity, and capabilities.

Accenture report indicates that by 2022 banks that invest in AI at the same rate as top-performing businesses could boost revenue by an average of 34 percent. This investment will come with an average 14 percent rise in employment.  This job creation is mainly due to the continuing general correlation between the increase in gross domestic product and job creation. By 2035, AI could add value to the U.S. economy at $7.4 trillion. There are concerns that AI will destroy jobs between now and this robust AI-enhanced future. The World Economic Forum projects that 5 million jobs will be lost within the next 24 months in the top 15 developed economies. But these projections have no any clear information.

In some areas, AI will more accurately displace jobs while creating an equal number of new jobs elsewhere. The losses will mostly be among the transactional workforce, while the direct gains will be in skilled positions related to AI. The potential for such benefits seems to be recognized by bank employees. It is expected that AI will simplify the work of bank employees by improving work-life balance. AI will be at its best when it helps people perform jobs and not compete with each other. AI-powered robots are not aimed at replacing human workers but at making them more efficient at work. AI's potential is underexplored but combined with human intelligence, it is all set to create wonders and bring about a drastic change in the way of living.

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