The explosion of AI has been so rapid that it is often hard to identify with any certainty how it will add value to your business. AI tools were free to use when they launched, before rapidly evolving into commercial models, and these costs are starting to leave many organisations struggling to find Use Cases that provide the necessary return on investment. Many organisations were keen to jump on the AI bandwagon without a clear objective, but implementing AI to the maximum benefit requires a well-defined business challenge, whether it is reducing costs, improving customer service, or increasing revenue. Without this, businesses run the risk of using AI purely for AI’s sake.
You also will not get the most from AI by trying to use it in isolation. The tools you choose must be embedded into your operating model alongside your people and processes. As a result, the status quo is less of the AI revolution that is frequently referenced and instead, seeing organisations proceeding with caution.
Many organisations were keen to jump on the AI bandwagon without a clear objective, but implementing AI to the maximum benefit requires a well-defined business case.
Those operating within the financial services sector face unique challenges because of regulatory requirements and risk management concerns: the EU Artificial Intelligence Act is also a major and comprehensive regulation on AI. These factors add another layer of complexity to your decision-making process. Trying to embed AI into a banking process is a lengthy task that must meet all risk requirements, and this can be prohibitively expensive to develop, and unlikely to meet the required return on investment quick enough.
Another factor that is increasingly discussed is the risk of AI perpetuating gender bias. Since algorithms are trained on historical data, they often mirror the biases present in that data, leading to unfair and discriminatory outcomes at both individual and organisational levels. For instance, in hiring processes, AI systems might favour male candidates for traditionally male-dominated roles, like software engineering, while disadvantaging women for the same positions. Similarly, loan approval algorithms have been shown to disproportionately deny credit to women or minority groups, even when their financial qualifications are equivalent to those of men or individuals from other groups.
Since algorithms are trained on historical data, they often mirror the biases present in that data.
It is therefore essential to train the data to be diverse and representative of all genders, races, and socioeconomic backgrounds. This can help minimise the risk of amplifying existing biases.
Equally important is transparency in AI modelling, including regular audits both during development and once the system is in use, to track potential biases and correct them promptly. The importance of human oversight cannot be underestimated and also human intervention —AI should not operate in isolation and we have seen many companies (including Apple) who have recently had to pull newly launched services. Companies should combine AI with employee training and cultural programs and guidelines focused on identifying and challenging biases as they arise. For example, human supervisors could review and adjust AI-driven hiring decisions or loan evaluations, ensuring fairness is maintained.
Human oversight is imperative beyond bias though and is a consistent theme when we talk to our clients. AI has transformative potential, but it must be implemented thoughtfully. Each financial services organisation will have its own appetite for risk, but from current experience Projective Group finds that AI works best when there is a handshake between people and AI tools. Remember that an AI solution that works well for one company may be incredibly uncomfortable for another organisation, so working out the different roles and appetite within your operating model for AI is critical upfront.
Companies will soon tire of all this ‘AI’ talk if they do not see the benefit of using these revolutionary tools. The AI models that will rise above the rest this year will be those that produce a tangible ongoing cost reduction for the businesses using them, without harming reputation and creating increased risk.
Companies will soon tire of all this ‘AI’ talk if they do not see the benefit of using these revolutionary tools.
As specialists in Financial Services, we have deep expertise in helping our clients to identify, navigate and implement AI use cases and we have already worked with a number of companies in the financial services sector to deliver AI success stories. There are obvious tasks where AI can be of great benefit and here is a snapshot of where we see AI being successfully used in the market.
‘AI’ may be a buzzword (type ‘AI’ into the Google search engine and you get more than 19 billion results) but it is not a miracle cure. Your company will still have to consider risk factors, the cost of adoption and the unavoidable fact that not everyone has the skills to use it effectively. Projective Group can help your company to structure and implement a realistic and clear AI strategy. A strategy that will allow you to use artificial intelligence to deliver real value.
If you're keen to explore how AI and data-driven strategies can create real business value, join us at our Data Exchange networking event on 13th May.
Talk to Projective Group today to learn more about how to make AI work for you and your organisation.
If you're keen to explore how AI and data-driven strategies can create real business value, join us at our Data Exchange networking event on 13th May. Taking place in our office after the Gartner Data & Analytics Summit in London, this exclusive evening brings together innovators and industry experts to exchange ideas, insights, and practical experiences. Secure your spot now and be part of the future of data in financial services.
Gegründet im Jahr 2006 ist die Projective Group ein führender Spezialist für Change im Financial Service Bereich.
In der Branche sind wir als umfassender Lösungsanbieter anerkannt und arbeiten partnerschaftlich mit unseren Kunden zusammen, um ganzheitliche und pragmatische Lösungen zu bieten. Wir haben uns zu einem vertrauenswürdigen Partner für Unternehmen entwickelt, die in einer sich ständig wandelnden europäischen Finanz- und Unternehmenslandschaft erfolgreich sein und wachsen möchten.
