AI Brings Competitive Advantage and Efficiency: Financial Services Firms
According to a PwC-FICCI survey, two out of three companies in the financial services (FS) industry say that artificial intelligence provides a competitive advantage and improves operational efficiency despite concerns about privacy and data protection.
The survey of Indian financial institution executives found that 83% of respondents said improving customer experience is the top driver for AI use cases. Chat automation, fraud detection and AI virtual assistants are the top three widely deployed use cases in the FS industry, he said. Of the respondents, 57% said AI would give them a competitive advantage over their peers. Improving the customer experience, improving productivity and increasing revenue were the top three drivers.
While 83% of respondents say they have a well-defined AI strategy, 65% say they are ahead of their peers in implementing AI, despite the dynamically changing AI landscape.
According to the survey, the main concerns of the financial services industry relate to data availability, consumer privacy and data security, integration, operationalization and maintenance of AI infrastructure, as well as than the very distinctive and progressive skills required to succeed in AI. PwC says its benchmarking of the current AI regulatory landscape in India against that of its global peers suggests the need for a well-designed and scalable regulatory plan for the entire FS industry and covering different categories of risks. The survey findings also underscore the need for an accountable AI framework to ensure ethical, fair, transparent and accountable practices.
According to the survey, India’s current legal infrastructure is at a nascent stage and does not address implications of biased data results, sharing of sensitive or personal data/information, non-liability in case of accident involving loss of life/property, AI transparency of models and results, AI robots and their possible rights (citizenship, licenses, etc.) and intellectual property rights (IPR), copyrights, competition laws and patent credits, etc.
The survey was conducted to understand the current adoption, sentiments, use cases, challenges and future aspirations regarding AI in financial services industries such as banking, insurance and NBFCs, asset and wealth management and payment industries.