Cognitive technologies have been adopted over the years by multiple corporations in a number of ways to increase speed and cost savings, improve quality, and reduce risk; they can be:
- Built into applications to make intelligent software, further enhancing functionality and end-user experience, giving a competitive edge to the organization,
- Embedded in the organization’s workflows to automate corporate processes and improve operational efficiency,
- Used as insightful applications that assist strategic decision-making by uncovering useful information by means of their advanced predictive and analytical capabilities.
As we know, AI is an attempt to mimic human behaviour by emulating tasks which a human would otherwise be able to perform such as visual perception, speech recognition and language interpretation. However, one of its most useful aspects is the ability to process massive amounts of / big data in a shorter period of time and apply predictive analytics to it.
Identity management is key to any organization, be it a bank, product or services firm, for authorized and controlled access to critical information. AI capabilities such as speech recognition or aural perception can provide an additional layer of security for client identification, especially in areas which require telephonic interaction with customers.
Many banks use advanced due-diligent software to handle their KYC verification processes by using pattern-recognition techniques to parse out high-risk clients.
Customer interaction has improved with the use of Chatbots that use NLP (Natural Language Processing) to provide human-like interaction, thereby reducing turnaround time for queries and complaints. Voice-enabled guides reduce customer service costs and redirect workforce effort into more productive matters.
Businesses can stay up-to-date on the latest regulatory requirements with the use of cognitive engines that make use of NLU (Natural Language Understanding), a subset of NLP, to handle large volumes of unstructured textual data by parsing and analyzing lengthy compliance documents and alerting the businesses on new and changed policies.
AI has transformed Customer Relationship Management (CRM) in businesses by predicting customer needs based on historical data, providing insights and recommending solutions even before the customer asks for it. Salesforce (CRM product) has come up with its AI-flavoured Einstein software that conducts predictive analysis on potential customers based on past and historical leads.
Marketing campaigns use AI-powered solutions to understand the best audience for each campaign and deliver the required content accordingly.
Commerce has been influenced greatly, whether it is with e-commerce giants like Amazon and eBay, or with large-scale merchandise retailers like Tesco and Walmart; AI solutions are used to make product recommendations by understanding customer needs, analyzing purchase patterns based on past choices and tailor future promotions accordingly.
Trading algorithms in investment banks use predictive analytics to study real-time market data and predict stock trends in company stock and commodity prices and assist decision-making while trading in futures and options. Machine learning is already being used across banking services to create pricing models to have a competitive edge over other banks. AI utilities may influence a financial advisor’s view of an asset class or stock, by reading and filtering relevant news and further highlighting them to a trader’s screen.
Operational and IT processes can be automated almost entirely thereby reducing manual effort and staffing costs. The use of smart monitoring and alerting automation controls can allow a pre-emptive action to avoid incidents causing financial impact and allowing staff to take proactive steps to avoid further impact. This results in financial and operational cost savings and promotes efficient use of resources. Operational efficiency can be improved by AI solutions that analyze resource schedules and come up with the most effective and optimized schedule plan instead of continuous manual planning.
With unlimited benefits to offer, more and more organizations are moving towards integrating AI solutions into the fabric of their businesses in order to succeed and gain a competitive edge.