Wednesday, April 17, 2024

Financial services: 5 generative AI use cases

Generative AI could change our lives, employment, banks, and investments. It may have as much impact as the internet or mobile device. Indeed, 82% of companies exploring or employing generative AI believe it would revolutionise their sector.

Gen AI most significantly boosts productivity and operational efficiency. Every service or product in financial services begins with a contract, terms of service, or other agreement. Gen AI excels at finding and summarizing complicated data like mortgage-backed securities contracts and consumer asset holdings.

But there’s more. Foundational models like Large Language Models (LLMs) are trained on text and interpret human language and conversations contextually. These capabilities can accelerate, automate, scale, and improve customer service, marketing, sales, and compliance.

Gen AI can help people work more efficiently and focus on critical, high-impact tasks. Code assistance and generation, like Codey, a series of PaLM 2 code models, can greatly improve programming speed, quality, and comprehension. Software developers, risk and compliance experts, and front-line branch and call center staff are among the industry’s biggest talent concerns.

5 practical financial services use cases

Gen AI has three primary benefits for enterprises and institutions:

1. Creating conversational online interactions (e.g., customer service automation, knowledge access)

2. Providing straightforward access to complicated data for enterprise search, product discovery, and business process automation.

3. Generating material with a single click (creativity, document generation, developer efficiency)

Starting with a single use case that solves a business problem is ideal. Your business should benefit from it and it should be strategic. This makes measuring outcomes easy.

Here are five gen AI use scenarios to get started

1. Finding and analyzing financial documents

Banks spend less time with clients because they spend a lot of time searching for and summarizing internal data.

Bank personnel can use generative AI to discover and analyze information in contracts, credit notes, underwriting, trading, lending, claims, and regulatory papers and other unstructured PDFs.

Gen AI can help bank analysts speed up report generation by studying and summarizing thousands of global economic data or other facts. It helps corporate bankers prepare for customer interactions by developing thorough and easy pitch books and other presentation tools that spark conversations.

2. Improved virtual assistants

Customers may need help with a unique issue that isn’t pre-programmed in AI chatbots or customer care workers’ knowledge libraries. For instance, helping a consumer resolve fraud. Typical AI chatbots and knowledge libraries won’t have that information.

Gen AI helps clients find answers. It specializes in finding solutions in massive data sets, summarizing them, and helping customer agents or AI chatbots. Generative AI chatbots can also converse. These characteristics enhance customer service. This video shows how generative AI can speed up credit card fraud resolution, benefiting customers and customer support workers.

3. Capital market study

Investment firms must swiftly and effectively query varied business filings, transcripts, reports, and complicated data in multiple forms to complete their knowledge bases to understand global markets and risk.

Investment analysts can use generative AI techniques for study. Such assistants can rapidly and intelligently identify and summarize significant information from millions of event transcripts (e.g., earnings calls), corporate filings (10Ks/10Qs), consensus estimates, macroeconomic reports, regulatory filings, and other sources.

This video shows how to extract and summarize essential information from complex documents like 10-K forms, research papers, third-party news sites, and financial reports with a click.

4. Consultant for regulatory code amendment

Globally, new financial services regulations develop every year, and current standards change regularly, requiring a lot of manual or repetitive work to interpret and comply. Developers must immediately comprehend the regulatory or business change that requires code modifications, automate and cross-check changes against a code repository, and offer documentation.

Gen AI may summarize replies with links to the answer to help developers understand the regulatory or business change that requires code changes. It can automate coding changes with people, cross-check code against a repository, and document.

Today, developers must make several software changes to meet Basel III international banking regulation requirements, which involve hundreds of pages of paperwork. Gen AI might describe a Basel III region to help a developer comprehend the context, highlight framework elements that need code changes, and cross-check the code with a Basel III coding repository.

5. Financial advice tailored to you

Existing Machine Learning (ML) systems can forecast marketing or sales offers for specific consumer segments based on accessible criteria, but operationalizing those insights is difficult.

Marketing emails or in-app communications with financial advice might be time-consuming. Gen AI can assist create conversational one-to-one customised messaging at scale. Customer experience, retention, and cross sales can improve.

Google Cloud’s Vertex AI Search and Conversation can power these use cases. Even junior developers can build and deploy chatbots and search apps in minutes with Vertex AI Search and Conversation.

Vision to practice

Financial services leaders are creating and implementing their most innovative ideas with generative AI.

Deutsche Bank tests Google Cloud’s gen AI and LLMs at scale to give financial analysts new insights and boost operational efficiency and execution velocity. Banking operations and financial analyst activities can be completed more faster, empowering staff and enhancing productivity.

MSCI is also working with Google Cloud to accelerate AI-powered investment management solutions for climate analytics.

Dun & Bradstreet established a partnership with Google Cloud to innovate across many applications using gen AI.

Get started with generative AI

Gen AI is a new approach for organizations to produce value, not just a buzzword. Gen AI could transform financial services firms, even if it is still in its infancy.

News source:

agarapuramesh
agarapurameshhttps://govindhtech.com
Agarapu Ramesh was founder of the Govindhtech and Computer Hardware enthusiast. He interested in writing Technews articles. Working as an Editor of Govindhtech for one Year and previously working as a Computer Assembling Technician in G Traders from 2018 in India. His Education Qualification MSc.
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4 COMMENTS

  1. […] Financial services professionals expressed interest in implementing generative AI most frequently in the areas of talent, security, and customer experience. A whopping three quarters (75%) of the CEOs surveyed in the financial services sector feel that the institutions with the most advanced usage of generative AI will have a competitive edge. These business chiefs named customer care as one of their top technology goals. […]

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