Transformations in Banking Through Agentic AI and General AI
In the rapidly evolving landscape of finance, Agentic AI is making a significant impact. This advanced form of artificial intelligence is revolutionizing the industry by taking over repetitive processes, such as analyzing and resolving support tickets, and automating complex tasks like KYC checks and compliance.
However, as AI agents handle an increasing proportion of these tasks (between 50% and 85%), the focus shifts towards equipping workers with new skills. Employees will need to adapt to managing, training, and monitoring AI agents, as well as preparing for future iterations of AI and automation.
The financial services sector is particularly well-suited to AI due to its ability to personalize tasks like wealth management strategy development and automate complex processes. This automation can lead to improvements in compliance and risk management, potentially avoiding severe financial losses.
Yet, doubts about the accuracy and reliability of AI systems persist. A Stanford University study reveals that 45% of workers harbour such concerns. To address this, it's crucial to approach AI projects with an eye on training, validation, and change management.
The successful training of AI models relies on a strong data foundation and employees with the right skills. By investing in these areas, financial institutions can expect to see benefits such as revenue uplift and cost savings, with Agentic AI generating up to $450 billion in value by 2028.
However, Gartner predicts that more than 40% of agentic AI initiatives will be shut down by 2028 due to escalating costs, unclear business value, or inadequate risk controls. To avoid this, institutions must strategize and implement their AI initiatives thoughtfully.
Deploying AI can allow institutions to accomplish more with the same number of people, freeing up employees to focus on more innovative and higher-value tasks. In fact, banks can expect to see new brand engagement strategies with AI agents handling virtually all payments for banking customers.
The future of banking will depend on how financial institutions strategize and implement their AI and employee training initiatives. Banks with access to extensive electronic data and strong regulatory frameworks will benefit the most from the success of Agentic AI and Generative AI in new customer business strategies, compliance improvements, and enhanced risk management. These institutions that combine autonomous AI with human expertise for faster processes, precise risk assessments, and better customer experiences will lead the way in the AI-driven future of banking.
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