AI in Financial Services: Who wins the future of banking?

Financial services are ripe for AI disruption; they are data-heavy, with significant potential for automation.

The question is not if, but how fast, and how profoundly, would AI reshape the competitive landscape.

In Australia, the AI ecosystem is exciting, but has yet to reach critical mass.

Break-down of applications of AI in financial services

Artificial intelligence (AI) is currently being deployed to support three broad categories of need according to Harvard Business Review’s 2018 survey of business executives:

  • Automating business processes (47% of projects cited)

  • Gaining insight through data analysis (38% of projects cited)

  • Engaging with customers and employees (16% of projects cited)

As a data-heavy, reasonably high-touch industry, financial services are ripe for value creation through deploying AI techniques and technologies. AI is projected to facilitate widespread changes across financial services, ranging from doing the same activities better (in more efficient, targeted ways) to allowing radical changes in products and value propositions. In fact, Gartner predicts that 40% of financial services jobs will be automated by 2026.

“This article is an extract of a report published by our sister company Venture Insights. To enquire about becoming a subscriber, please contact Nigel Pugh.”