Artificial Intelligence (AI) is the buzzword, and for good reasons. If the thought of voice-activated commands to turn on coffee machines, read emails, and dim lights sounds inspiring, we have some bigger jaw-dropping applications of AI down your alley. Artificial Intelligence is all about cognitively booting a machine to function, adapt, and constantly learn how to be a human, without actually being one.
AI is now that’s everything taking the regulatory and compliance worlds by storm, and providing relevant, insightful data that makes decisions, connects with humans, processes scenarios, and devices solutions. The world is investing more into AI, and per a recent survey by Tata Consultancy Services, the second highest industry that is raking up AI adoption is
Financial Services. The BFSI (Banking, Financial Services, and Insurance) sector is making whirlwind changes with AI, and doesn’t restrict itself to chatbots. It has been noted that nearly 86% of the leaders in the BFSI industry are already early-adopters of this cutting-edge technology, and the trend is only looking bullish for 2020. The future of AI looks even bigger than it once was and ‘Variant Market Research’ predicted that it might reach $43.2 billion by 2024; exhibiting a Compound Annual Growth Rate (CAGR) of 59.8% during the eight year 2016-2024.
An overview of the impact of AI on each of the sectors
A boatload of transactions, a river run of loans and outstanding statements, and a barrage of compliances- this sums up a day in the life of a banking professional. Banks are data gold mines in their true spirit, but dealing with numbers and figures on a daily basis leaves a small margin for human error, compounding for losses running in millions. Such a critical industry, therefore would need a superior automated process that can deliver sustainable solutions to their customers and support their workforce in the best way possible.
Personalised customer experience and mapping:
Mapping a customer’s journey, and enhancing their experience at every step may be daunting for a human-only based job. However, it has been found that working alongside chatbots and other AI tools has provided a significant boost to the relationship between a customer and their respective banks. Chat bots are the tellers of today, and has immensely improved the efficiency of the transactions by employing analytical tools, added with emotion to interpret the customers’requests.
More conversations, less monotony
With hassle-free touch points and the customer’s banking history and risk transactions, AI-powered chatbots hold conversations with customers that screen the customer’s requirements, process the necessary security detail, and offer on-point solutions that work seamlessly. Preliminarily being screened by a machine or an IoT device ensures that basic requests can be processed without underutilising knowledge and business process experts who are now more available to handle more complex customer problems. In a traditional banking setup, filling a form or updating a passbook would be a tedious Saturday afternoon job, whereas with AI schematics in the picture, one can save substantial cost, the rigour of transportation, and the time cost of money. Tracking data points, and measuring paper trails can be negated, and power green computing and work to reduce the carbon footprint, one device at a time.
The Promise of Tomorrow
With expertise in Trend Analysis and Outcome Prediction, AI tools give a defined structure into the performances and gaps of the future. Although these tools have been around for a while now, their magnitude and take have been amplified where valuation through e-KYC and facial recognition, along with a host of other applications makes for more intelligence- focused transactions. Advanced POS systems rule the day, and underwriting assessments have been reduced to a matter of a few seconds. AI-powered devices lead us to accessing a person’s mental space, thought evolution, and behaviour, depending on which algorithms generate the risk profile, and help in identifying problem and fraud areas, while providing strategies to mitigate them, thus yielding in high cost (and time) savings.
PwC’s Global Data and Analytics Survey in 2016 revealed that machine algorithms will power the next generation of decisions, at a staggering 54%. And we thought that the precarious structure of Insurance as a concept gently balanced itself solely on human judgment!
McKinsey looks to the future of the world (and not too far away- 2030) and sees self-driving cars and their in-built AI calculate the map they must follow and the impact on the car insurance premium that needs to be paid. If at all there is an accident, the internal configurations measure the scope of damage, inform the driver, notify the relevant authorities, who would dispatch a drone or robot for physical verification.
Sorting Claims out
Trundling through cases and piles of data, an insurance surveyor would not be able to flag off fraudulent claims without having a good look at the case. However, with the rise of AI, actuarial conversion of relevant data would be as seamless as tying one’s shoelaces. Interfacing with a machine, connected by the IoT (Internet of Things) may be one of the easiest and fastest ways to get your claim processed without the significant time and money spent on judicial courts and out-of-court settlements. This thus, reduces the burden on a large number of ecosystems, and promotes efficient data distribution.
Creating the infrastructure
Generating an aggregate of infrastructure and capabilities ensures a strategy that works for the benefit of all. In terms of insurance, this would be a superset of data containing all the variables necessary to compute a good insurance coefficient score to determine the proportion of insurance to be underwritten. In a connected database, this process would be reduced to a dynamic few minutes, and significantly reduce the errors and minimise the losses occurred as a result.
There is much stake for all of us. Harnessing the winds of AI would immensely transform the way we think, see, and explore the world. Are we ready to revolutionise our spaces?