Financial Services Is Another Sector AI Will Change

“We have $2 trillion more in assets than we did a year ago with the same amount of employees. That is technology at work.” -- Larry Fink

In our ongoing discussion of AI disruption and opportunity in different market sectors and industries (last week we touched on healthcare; click here to view), today we’ll briefly discuss generative AI applications in financial services.

As one might expect for a particularly data-intensive industry, financial services have rapidly moved to integrate generative AI to address key business challenges.  For example, companies like Intuit and Bridgewater are leveraging AI to enhance decision-making and analytical capabilities, while insurers like Travelers are using it to refine risk management and claims processes.

Much of the emphasis in adopting generative AI thus far has been about identifying internal business issues that need resolution.  This includes making knowledge workers like financial analysts and advisors more efficient by automating the tedious aspects of their work, thus freeing them up for more creative and more highly value-adding tasks -- such as direct face-to-face customer engagement.  Many business owners also anticipate that AI tools will improve employee performance by making their work environment more enjoyable, helping them avoid stress and burnout on rote tasks.

However, it’s not all about gaining efficiencies.  We see opportunities where generative AI can significantly improve customer interactions by providing (in the case of an AI chatbot), or helping a human representative to provide, tailored, efficient, and insightful responses, enhancing overall customer experience.  The diverse nature of the financial sector -- spanning banking, capital markets, insurance, financial planning, and payments -- also presents numerous opportunities for AI applications to meaningfully enhance product and service offerings.

Will All This Heavy Investment In AI Ever Equal Profits?