Very few technologies have captured the popular imagination like Artificial Intelligence (AI). It has become a key feature in science fiction movies and news stories about technology. But beyond the hype, organisations are looking at how it can transform their businesses, drive efficiencies and help them to serve customers better. This report from UK Finance explores the use of AI in financial services.
AI has become a focus for consumers, institutions and regulators globally. In the UK, the Office for AI and the AI Council have been established. In Europe, the European Commission has developed ‘Ethics guidelines for trustworthy AI’. As new capabilities and models emerge it is important for institutions to understand how they can take advantage of each new development. However, while the pressure to stay ahead has never been greater, it is critical that this is done in a responsible way. Consumers are increasingly mindful of the security of their data and how it is being used, and institutions are aware that new capabilities can also create new potential liabilities.
It is worth recognising that financial services have been at the forefront of using algorithms and data for some time. There have been long established frameworks and governance in place to manage this within firms, and organisations know they have a responsibility to comply with laws and regulations, including GDPR. The pace of development and capability is accelerating, and, as in other sectors, this technology is enabling financial institutions to deliver better and more resilient services to their customers. This transformation can drive efficiencies in back office functions such as cyber security, risk modelling and call centres. It can also help deliver more intelligent offerings to customers, from helping them to protect their money against attempts at unauthorised access, to providing new ways for them to save.