5th Edition: GenAI insights for Banking COOs
Welcome to the latest edition of GenAI for Banking COOs. We hope you are enjoying a well-deserved rest and a joyful holiday season. We are glad that you are sneaking a quick look at this newsletter though ??
It has been an intense year for GenAI. If we had a magical crystal ball, it would sure be fun to see what we would write in next December’s blog. In the meantime, we continue to keep an eye on what’s happening today and now in GenAI. For this edition, we curated the below topics for you:
?
CaixaBank makes a focused bet on GenAI
CaixaBank has been no stranger to AI, having first started using it in 2014. In their news release, they share some great examples of how AI has been infused in customer and internal processes from call-centers to chat bots. For GenAI enthusiasts like us, more importantly, they have announced a 100 people cross-functional team to go deep into GenAI. Some of the use cases that this team is working on includes streamlining customer service through digital channels, analyzing data for informed risk decisions, self-generating code for faster software development, automated test cases and drafting documentation for new technology features.
The creation of this new team is a clear indication of the bank's commitment to remaining at the forefront of this rapidly evolving field. The team is also leveraging CaixaBank’s strategic partnership with Microsoft that gives them access to latest tech in a sandbox and secure environment. Our firm, Accenture, is also proud to go on this journey together with CaixaBank.
For any distinctive goal that is worth pursuing, a focused and committed effort is required. We are glad to see CaixaBank making that bet on GenAI. We will be following their progress with interest.
Risk Management for LLMs gets a boost from Facebook and OpenAI
When we talk to Banking COOs across the industry, risk management is one of the key constraints stopping all-out deployment of GenAI. The state of art in this space continues to evolve with frameworks like Responsible AI providing a blueprint to improve AI risk management across the enterprise.
On this important topic, it is good to see vendors like Facebook and OpenAI also taking material steps to improve risk management for core LLM development and usage. Meta announced Purple Llama, which is an umbrella project consisting of a set of tools and techniques that enable responsible and safe use of LLMs. Initial use cases include cybersecurity focused tools as well as LlamaGuard which is a safety classifier to monitor both the inputs and outputs to the LLMs. It was also interesting to see that Meta’s solution leveraged GenAI to police / refine itself vs. needing more significant human involvement.
Taking this up one level, Open AI introduced its Preparedness Framework. This framework outlines OpenAI’s approach to mitigating catastrophic risks from increasingly powerful models. The framework introduces a dynamic measurement scorecard, risk thresholds, operational structure to manage risks, protocols including regular safety drills as well as industry collaboration to track misuse in the real world.
Given the importance of risk management to banks, it is great to see different stakeholders approaching this from different angles from Responsible AI to Purple Llama to the Preparedness Framework. We will need all these techniques working together and coming at the problem from different angles to help improve the overall risk management posture for Generative AI.?
领英推荐
WEF’s research on LLMs impact on jobs raises the stakes for proactive workforce planning
The World Economic Forum in collaboration with Accenture shared their research on the impact of LLMs on the jobs of tomorrow. We found quite a few things interesting when going through this report. Firstly, they broke the job into multiple tasks and analyzed the impact at the task level. This allowed them to come up with a bottom-up impact estimate of GenAI benefits for each job type. Secondly, they distinguished the impact between automation vs augmentation vs limited or no impact. This allowed them to make distinctions between what LLMs mean for clerical tasks vs an underwriter’s tasks. Next, they aggregated the analysis for different jobs as well as different industries. Their analysis showed banks and capital markets right at the top in terms of impact across all industries. Good to see that this blog is focused on the right industry ??
Lastly, taking a global lens, the report concludes that over 23% of jobs are expected to be impacted within five years. While routine tasks, like credit authorization, will be automated, LLMs also hold immense potential to augment human capabilities in complex roles like underwriting. Tasks requiring abstract reasoning and problem-solving can be supercharged by LLMs, boosting productivity and creativity, but this evolution demands proactive adaptation. Reskilling and upskilling initiatives would float to the top of the COOs agenda as they and their employees reflect on the material impact that GenAI will have on their day to day tasks.
Accenture launches GenAI Studios in New York and Chicago for Banking
You may have heard us mention a couple of times about the $3 billion we are investing in GenAI ?? One of the beneficiaries is the launch of Accenture’s GenAI studios in North America. Among the 6 locations, both New York and Chicago studios would specialize in financial services. The studios give banking leaders an opportunity to gather with their teams and go deep into GenAI, whether it is looking at the latest GenAI innovations across the world, discussing approaches to empower and enhance their workforce, or developing the roadmap to scale AI responsibly across their enterprise. We are super excited about the potential for this space for banking leaders and invite you to join us in the coming year with your teams here.
?
As always, we hope this newsletter gave you some good food for thought in shaping your GenAI journey. As this year of innovation and opportunities draws to a close, let's raise a glass (or a cup of eggnog!) to new beginnings, fresh perspectives, and endless possibilities that the new year will bring. Our team wishes you and your families a joyful holiday season and a prosperous New Year filled with success and fulfillment. We look forward to partnering with you in the new year as we continue this incredible journey. Stay tuned until the next edition!
?
#GenAI #COO #BankingOps #Innovation #ArtificialIntelligence #BankingTechnology #Banking #CapitalMarkets #Transformation #LLMs
?
This issue of the newsletter is brought to you by Accenture’s Rajat Dev | Nazat Dowla, MBA / MPP | George Heathcote | Ian Jacobs | Donrick Sanderson II
?