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AI making inroads in financial services sector, but not without difficulty

Artificial Intelligence
(Image credit: Image Credit: Razum / Shutterstock)

Artificial Intelligence (AI) is making inroads in the financial services sector, but not without difficulty, and there’s still a lot of work to be done before it reaches its potential.

This is according to a new report called Smart Money: How to drive AI at scale to transform the financial service customer experience, recently published by the Capgemini Research Institute.  

The report states that AI is being used at scale among financial services organizations to improve the overall customer experience (CX). Approximately half of customers now interact with an AI on a daily basis, and banks are reaping the benefits: they’ve reduced cost of operations (13 percent) and increased revenue per customer (10 percent).

However, while banks may be reaping the benefits, the customers – not so much. Almost half (49 percent) rate the value they derive from AI-enabled digital touchpoints as non-existent or less than expected, while more than a third (35 percent) said current interactions “lack the human touch”.

The report also states that other industries have managed to implement AI products in a smoother fashion than in finance. Only five percent of banks and six percent of insurers have been able to deploy AI at scale across several touchpoint functions.

Leadership and organizational resistance are the two main challenges, followed by anxiety around skills gaps and fear surrounding job losses.

According to the report, agile fintechs, not bound by the same challenges as traditional legacy financial firms, are enjoying greater success with the technology.