Financial services firms are increasingly relying on artificial intelligence to boost productivity and operational efficiency, but many are not seeing tangible results according to industry leaders at the CogX Global Leadership Summit. HSBC’s head of generative AI, Edward J Achtner, highlighted the bank’s 550 use cases of AI across various business lines, including fighting money laundering and fraud. A partnership with Google on AI technology for anti-money laundering has been in place for several years, with a recent focus on generative AI technology which presents unique risks and opportunities.
Klarna CEO Sebastian Siemiatkowski discussed the company’s use of AI to make up for a loss in productivity due to a reduction in the workforce, aiming to further reduce headcount to 2,000. The move has raised questions about the impact of AI on jobs, with concerns about potential disruptions to the workforce. Nathalie Oestmann of NV Ltd advised financial firms to pursue continuous learning and incorporate AI into their everyday operations to adapt to the changing landscape. She emphasized that as long as people are trained appropriately, AI can help firms evolve and stay competitive.
Lloyds Banking Group’s chief data and analytics officer, Ranil Boteju, outlined the bank’s cautious approach to generative AI, focusing on automating back-office functions and providing AI-generated responses to client queries. He stressed the importance of implementing guardrails before scaling generative AI tools to ensure customer safety and data integrity. Boteju highlighted the distinction between traditional uses of machine learning, intelligent automation, and chatbots and the emerging technology of generative AI, which requires a different approach.
Other AI leaders in the financial services sector have expressed a more measured approach to the adoption of AI technologies. Bahadir Yilmaz, chief analytics officer of ING, emphasized the potential of AI but noted that the tone of communication around its use varies among firms. ING primarily uses AI in global contact centers and for software engineering, without needing to position itself as an AI-driven bank. Johan Tjarnberg, CEO of Trustly, highlighted AI as a significant technology lever in payments, with a focus on enhancing customer experience through intelligent charging mechanisms for subscriptions.
Overall, the discussion at the CogX Global Leadership Summit revealed a diversity of approaches to AI adoption in the financial services industry. While some firms are making bold claims about the transformative potential of AI, others are taking a more cautious and measured approach. The key takeaway is the importance of continuous learning and adaptation to leverage the benefits of AI while mitigating potential risks. As the industry evolves, financial services firms will need to navigate the challenges and opportunities presented by AI to stay competitive in a rapidly changing landscape.
