Artificial Intelligence (AI) has been a game-changer across industries, and the banking sector is no exception. With the advent of Generative AI aka GenAI, a subset of AI that can create diverse data types like images, text, audio, videos, 3D objects, simulations, and more, the possibilities for innovation in banking are endless. This article will explore how banks and financial institutions are using and experimenting with Generative AI, drawing from real-world examples and use-case scenarios.
The Rise of Generative AI in Banking
Generative AI, like the technology that powers OpenAI’s ChatGPT, has the potential to revolutionize how banks interact with customers, manage their knowledge bases, and protect themselves and their customers from fraud and financial crimes. However, the adoption of this technology in the banking sector is still in its nascent stages.
Large language models, a type of Generative AI, have been put on many banks’ radars, thanks to the impact of ChatGPT. However, only a handful of banks have put this into the production environment.
Read also: 10 Reasons the BFSI Sector Should Invest in AI
Real-World Applications of Generative AI in Banking
- Organizing Institutional Knowledge: One of the ways banks are leveraging Generative AI is by organizing their knowledge bases. Banks are training language models on internal documentation and allowing employees to interact with a language model that can answer questions that can only be answered by searching that documentation. For instance, SouthState Bank has been training OpenAI’s ChatGPT on bank documents and data (not customer data) to allow employees to query the system to summarize and assimilate the bank’s internal records. Similarly, OpenAI and Morgan Stanley have partnered to help Morgan Stanley’s wealth management employees locate information within the investment bank’s large repository of content. This new level of knowledge virtualization is taking banks by a storm.
- Fraud Detection and Prevention: Generative AI is also being used by banks for fraud detection and prevention. For example, Goldman Sachs uses Generative AI to help developers write code, while JPMorgan Chase uses it to analyze emails for signs of fraud. JPMorgan Chase has also trademarked a technology called IndexGPT that could select investments for wealth management clients, indicating a larger effort by the bank to invest in AI technology.
Read also: How Futurism AI is pioneering a New Era in Fraud Detection & Prevention for BFSI Sector
- Customer Service: Generative AI has the potential to revolutionize customer service in banking. While few banks have deployed chatbots powered by large language models, companies like Kasisto and Monarch offer services to banks and consumers that promise powerful AI-powered virtual assistants and chatbots powered by large language models.
However, it’s important to note that these chatbots need to be more than just replacements for interactive voice response (IVR) systems. Further, these systems are being trained to be able to interpret longer user inputs and handle multiple requests in one.
The Future of Generative AI in Banking
The future of Generative AI in banking looks promising. However, banks ought to be careful about their strategy for adopting AI. One of the big risks about AI for organizations at the moment is it turning into a Frankenstein’s monster of pet projects. To really get the organizational value at a strategic level, you need to build a framework where AI is part and parcel of the way that your organization does business.
At Futurism Technologies, we believe in the power of Generative AI to revolutionize the banking industry and the entire BFSI sector. Our Generative AI services are designed to help banks and other organizations harness the power of this revolutionary technology to innovate and improve their operations and become forward-thinking and future-proof banking organizations.
Generative AI has the potential to transform the banking sector in numerous ways, from improving customer service to enhancing fraud detection and prevention. As banks continue to experiment with and adopt this nest-gen technology, we can expect to see even more innovative applications of GenAI for banking industry in the future.
Ready to revolutionize your banking operations with Generative AI? Contact our AI experts today to learn how our GenAI services can help you innovate, improve, and future-proof your banking organization.
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