Banking GenAI #10 - Insights for COOs
Welcome to the latest edition of GenAI for Banking COOs. In today’s newsletter, we cover global examples of how Banks continue to embed GenAI and unlock tangible value.
In this issue, we will cover:
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Our COO forum on ‘GenAI meets ZeroOps’ convened for its 2nd edition recently and we walked away truly inspired on the pace and momentum in the industry
Our recent GenAI COO Forum with over 25+ Banking Operations executives attending took place on February 28th. The session buzzed with lively discussions about the growing momentum of GenAI in Banking. In a closed-door session, the audience engaged in a frank discussion around GenAI in Banking, best practices around each other’s journeys, and tactics to scale GenAI use cases into production. We look forward to continuing this industry dialogue during the 3rd session of our COO Forum in June. As you will read in this newsletter and in the coming editions, there is tons to talk about and learn from each other – stay tuned!
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CBA is a great banking example of rapid GenAI adoption across the enterprise
We enjoyed reading Matthew Sainsbury’s article in the Tech Republic on how Commonwealth Bank of Australia (CBA) has emerged as a leader in banking technology in recent years and is now innovating through GenAI, with over 50 GenAI use cases implemented to simplify operational processes and enhance customer experiences. Over 500 employees are being upskilled on AI tools and the recent launch of their GenAI studio has accelerated use case development and efforts. In addition, CBA has announced the deepening of its existing AI partnership with Microsoft to focus on delivering superior customer experiences, customer safety, sovereign capability, people experience, and engineering excellence. In this newsletter, we have routinely talked about the need for Responsible AI and it was also good to see how CBA is using a responsible AI toolkit to ensure fairness and transparency as its use of AI and GenAI scales across the enterprise. We will continue to keep an eye out for further progress at CBA and wish the team great success!
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Wealth management is benefitting materially through AI and GenAI will only accelerate the impact.
In a recent article by the Financial Times Wealth Management hub, Elisa Trovato discusses insights from a study conducted by ThoughtLab revealing that a third of private banks are experiencing revenue growth from the computational capabilities of “analytical AI”, with expectations for continued gains stemming from the “transformative” efficiencies enabled by GenAI”. These GenAI capabilities may even enable wealth managers to personalize wealth management at scale, through targeted marketing campaigns, personalized investment proposals, and even custom chatbot interactions, generating significant additional revenue for wealth managers within three years. These developments would unlock the power of underserved segments, similar to how robo-advisors democratized financial advice, but here, enhanced analytics through traditional and generative AI would identify and cater to specific niches, like corporate executives and entrepreneurs.
In her comments, Ida Liu, head of Citi Private Bank, discusses how AI has already been used for years in algorithmic and high-frequency trading. She predicts that the latest advancements in AI will enable it to drive impacts at a client level as well. These developments are further highlighted by Lou Celi, CEO of ThoughtLab, who addressed AI’s potential to squeeze investment inefficiencies and add value to wealth managers in areas such as portfolio construction where humans add less value.
We really enjoyed reading this article as it provided a good bird’s eye view of the impact of AI today, and of GenAI in the near future on wealth managers.
领英推荐
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US Treasury Department Report Warns Banks of Increasing Gen-AI Driven Cybersecurity Threats; Offers Guidance for Proactivity
?United States Treasury Department recently published a report on managing AI-specific cybersecurity risks across the financial services industry. This report aims to raise awareness of the cybersecurity risks surrounding AI in finance and follows the executive order by the Biden administration focusing on the "safe, secure, and trustworthy development and use of AI" issued in October 2023.
The report highlights the unique cybersecurity challenges banks are currently facing and set to face in the future related to GenAI, particularly the "Black Box" nature of some LLMs and the inherent risk of bias in results and outputs. The report offers valuable guidance pertinent to banking executives, including implementing robust risk management practices across the AI lifecycle, strengthening existing cybersecurity practices to account for additional GenAI risk, and collaborating with peer banks to share threat intelligence and best practices. We are confident that this report is already on the radar of banking CROs and CISOs as they integrate these best practices to further strengthen the AI risk management framework across the bank.
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As banks get into the finetuning game, it will be worth keeping an eye on the unfolding hardware race as they may soon find themselves competing for the chips too
We have started to see banks implement finetuned models (not just prompt engineering) in the wild across the world. We expect this trend to accelerate. This would require banks to have access to the hardware needed for finetuning their models, either through their cloud vendors or directly in their datacenters. Against this backdrop, we have started keeping tabs on the unfolding hardware race underway in the industry. The competition for dominance in AI hardware is heating up among tech giants, with Nvidia emerging as a key player as is also evident from the runup in its stock price. Nvidia continues to raise the bar higher with the latest being its Grace Blackwell superchip. There is high expectation for this chip regarding increases in efficiency that would save time and energy for running large language models, as Nvidia claims it is 4 times faster than its past generation’s Hopper GPU. However, Nvidia faces formidable competition from companies like AMD, Microsoft, Amazon, Meta, and Google, all of whom are developing their own custom AI chips. Moreover, companies like Intel, AMD, and Qualcomm are integrating neural processing units into their chips for localized AI tasks on devices like PCs and smartphones after continuous concerns for privacy and further improved performance in the AI sector. It will be fascinating to see how this race continues to evolve in the coming years.
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This glimpse into GenAI's impact on banking is just the beginning! We're as excited as you are about its potential. Stay tuned for upcoming editions packed with insights, industry intel, and practical tools to navigate the exciting future of GenAI in Banking together.
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This issue of the newsletter is brought to you by Accenture’s Rajat Dev | Nazat Dowla |Dhruv Laroia | Francesco Erriquez | Ashley Iu | George Heathcote | Ian Jacobs | Donrick Sanderson II | Sebastian Cadillo
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