To AI, or Not to AI: Making Rational Decisions in a Digital Age

Financial services executives are inundated with emails, text messages, meeting invites, and other digital communications. This onslaught of distractions makes it hard for executives to carve out time needed to think through critical issues, such as safely and effectively employing artificial intelligence and other innovative technologies. It takes a clear head to separate hyperbole from the tangible and impactful application of AI tools and technologies.

One way to clear the mind from the fog created by social media and email is to take a break from work and read a book. After I read a great book, I find myself more relaxed and ready for deep concentration. In fact, I often come up with great ideas to apply to my work while I’m reading or thinking about my current book. I recently picked up a classic, and given the title of this post, you won’t be surprised that it was a hardcover collection of Shakespeare. Perfect.

Now that I’ve spent a few weeks immersed in Shakespeare’s plays, I’ve discovered that themes from his work are still very relevant to the problems and issues we face today — even something as seemingly far removed from Elizabethan England as artificial intelligence in the financial services industry. With apologies to Shakespeare scholars, and to the Bard himself, here are three examples of how reflecting on classic literature can help provide insights into some of the most important questions about AI:

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How AI Empowers: “A Midsummer Night’s Dream”

How can financial services providers tap into the power of AI to create operational efficiency, reduce cost, and generate scale while continuing to smoothly run normal business operations?

If there was ever a parallel for AI in literature, it is most certainly Puck in Shakespeare’s “A Midsummer Night’s Dream.” Throughout the play, Puck introduces uncertainty and confusion every time he appears. By the end, however, Puck has helped resolve the many romantic entanglements that make up the plot, using his magic to create tidy endings for the characters. ?Is it possible Puck had a 18th-century version of AI to consult?

These storylines parallel the experiences of financial services firms that are introducing AI into internal operations. Implementing AI requires companies to take a series of foundational steps, such as building an organization-wide data management platform, that many employees may view as disruptive to their jobs. Even when the AI solutions are in place, some business and functional teams will embrace them while others might ignore them. It’s enough to make senior management echo Puck’s famous line, “Lord, what fools these mortals be!”

Over time, AI will prevail and help untangle many operational challenges. Companies that start with a solid foundation of data and infrastructure can build on that base, developing a comprehensive and flexible implementation plan. They can then execute that plan with skill and agility, pushing past any and all entanglements to achieve a happy ending of efficiency, enhancements, and cost reductions.

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Reducing Risk: “Hamlet”

How can financial services firms use artificial intelligence and machine learning to reduce risk?

In “Hamlet,” Horatio is the constant, loyal counsel to the sweet prince. He is always by Hamlet’s side. Horatio appears in almost every major scene, providing Hamlet with critical information — such as the existence of his father’s ghost — or at the very least trying to help him make dispassionate, rational decisions. Ultimately, Horatio helps block Claudius’ attempt to kill Hamlet.

AI can play a similar role for executives and their businesses. Consider compliance: maintaining compliance with a complex and ever-changing set of laws and regulations is a daunting challenge and top priority. Technology providers have come to market with AI-powered solutions that update automatically, factoring in regulatory changes and tools that monitor firm compliance. This sharply reduces the resources firms need to devote to these functions as well as and the risk of compliance failures. AI can play the same role in addressing other risks if companies — unlike Hamlet — follow the guidance of their effective, trusted advisor.

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Managing Risk and Ethics: “All’s Well That Ends Well”

How can financial services firms use AI to drive growth for themselves and their clients while protecting against technological risk?

In “All’s Well That Ends Well,” Helena sets out to win the heart of Bertram. This is tougher than it sounds since she is of low birth and he is a nobleman. Through a combination of clever planning and determination, however, she achieves her goal of marrying Bertram while also forcing him to mature and grow as a person.

“All’s Well That Ends Well” is one of Shakespeare's “problem plays ” — one that presents complex ethical challenges to the audience in the form of characters who are neither “good” nor “bad.” They represent larger problems; many of which we deal with ourselves. I suspect that’s why it came to my mind when thinking about transitioning business to AI. Financial services firms see the potential to transform their businesses with AI, but to reach that goal, they must navigate a host of new risks and ethical questions. The technology could introduce new challenges related to AI bias that leads to exclusionary practices, data leaks that threaten privacy, and other risks. For that reason, providers will need to partner with technology experts to develop careful plans for harnessing the power of AI safely. For firms able to execute on those plans as effectively as Helena, all will end well.

AI could transform business forever. However, that transformation will create challenges and pitfalls that extend beyond the technical and into deeper human and ethical considerations. That’s exactly the type of thinking that can be encouraged by logging off devices and reading classic literature.

Before tackling these existential issues, I think I’ll spend time using the technology itself to help strengthen some of my strained analogies between the Bard’s work and AI. Perhaps I’ll ask ChatGPT to translate my next staff communications into Shakespearian prose. I can see it now: “Beware the Ides of March.”