How Generative AI Infused Experiences Are Transforming Finance and Insurance?

The finance and insurance industries have always been known for their complexity, with numerous regulations, policies, and intricate procedures. From applying for a mortgage (Think about pages of documents you sign without reading and deeply understanding) to enrolling in an investment banking website. Or processes you go through submit your insurance claims. Navigating these industries requires a vast amount of knowledge and expertise. Also many of the financial services are not approachable to most of the people on the planet like investment advisors, trading stocks.

However, as artificial intelligence (AI) technology continues to?advance, we have a unique opportunity to simplify and create personalized, streamlined experiences for end users, employees and investors. In this article, we'll explore how generative AI is transforming the finance and insurance industries and provide some real-world use cases of how companies are leveraging AI to simplify the customer experience.

Personalized Experiences: Investment research reports or stock analyses for each client

Generative AI can now analyse and understand vast amounts of data to create personalized experiences and recommendations based on customers' unique needs and preferences. Companies in the finance and insurance sectors can improve efficiency and accuracy by automating customer-facing documents such as financial statements, account summaries, researches through AI. Personalization is possible through AI-generated investment research reports or stock analyses, tailored to each client's unique portfolio, interest and risk tolerance. This enables individualized investment strategies instead of treating all clients similarly.

In the insurance sector, AI can personalize insurance policies by analysing customer data such as driving behaviour, health and home, enabling the creation of a personalized policy that meets the customer's needs while minimizing risk for the insurer. Making it super easy for everyone to find-enrol best insurance policy that fits personal needs, easily get out of an insurance policy or submit claim all using natural language.

Summarized Financial articles, market updates for to clients or stakeholders

By analysing large amounts of data from various sources, generative AI-powered solutions can extract relevant information and provide concise summaries and insights, saving time for analysts, advisors, and investors, and making financial information more accessible for clients. Not many people are experts in financial markets dynamics after all. Also summarization and detail levels can be different based on experience of the users.

Super easy Loan-Mortgages processes

Generative AI can bring a significant transformation in loan and mortgage processes. Automation of document verification, credit scoring, and risk assessment can be simplified and expedited the loan and mortgage process, reducing costs, improving accuracy, and speeding up processing times.

With the integration of generative AI, the industry can take a step further in the lending process. Generative AI can bring summarized, easy to understand insights and predictions to customers. It can create super easy, personalized loan offers for individual borrowers based on their financial data, leading to better loan terms, lower interest rates, and higher customer satisfaction.

Moreover, generative AI can analyse financial data to create predictive models that help investors make more informed decisions and identify patterns and trends in the market, making it easier for traders to predict market movements.

Making Stock Exchange and trade stocks accessible to everyone!

The integration of AI into the finance and insurance sector is revolutionizing the accessibility of stock exchange and trading. With automated investment recommendations and personalized trading strategies based on an individual's risk tolerance and investment goals, AI-powered platforms can make it easier for everyone to invest. These platforms can analyse vast amounts of financial data and news sources in real-time, providing insights into market trends and making informed predictions about future stock movements. These experiences helps investors at any income level to make informed decisions about which stocks to buy and sell using natural language.

Generative AI can also monitor financial markets and detect unusual patterns or anomalies, alerting investors to potential risks or opportunities. ?AI-powered trading platforms offer real-time market updates and news, keeping investors informed about market trends and developments eliminating the noise. AI-powered experiences can provide personalized customer support, answering questions and offering tailored recommendations to any investors, from any background any region of the world.

Empower Advisors, Virtual Agents, Personal finance advisor for everyone on planet?

Currently, personal finance advisors are only available to a small percentage of people who have a certain level of investment. This leaves a large portion of the population without access to personalized financial advice. However, AI has the potential to change this by empowering financial advisors to cater to the needs of every customer of a bank.

With the help of generative AI, advisors can manage and analyze large amounts of data, including financial data, market trends, and news sources, in real-time. They can use this information to make personalized investment recommendations that are tailored to the risk appetites and investment goals of individual users.

Generative AI can, also, automate routine tasks such as data entry and analysis, allowing advisors to focus on higher-level strategic planning and provide more personalized advice to their clients. With the ability to communicate in different languages, AI can provide a more inclusive and accessible financial advisory experience for everyone.

Simplify-clarify financial statements, disclosures for non-expert audiences

Generative AI can be a game-changer in the finance and insurance sectors by simplifying and clarifying financial statements and disclosures, making them more accessible to non-expert audiences. Many people find financial statements complex and difficult to comprehend, especially those who lack financial expertise but need to make informed decisions based on the information provided. This challenge can be tackled by leveraging generative AI natural language models and summarization to analyze financial statements and disclosures, extract key information, and present it in a user-friendly format. This approach can help to improve financial literacy and transparency, reduce errors, increase efficiency, and enhance the accuracy and consistency of financial reporting.

Auto categorize-prioritize financial transactions, their type determines risk level

Generative AI can create personalized investment strategies and custom insurance policies for clients. By analyzing risk profiles, financial goals, and past investment behavior, generative AI can create tailored and cost-effective solutions, improving customer experience.

Generative AI can be used to automatically classify and prioritize financial transactions based on their type and level of risk. This helps financial institutions ensure compliance and security by monitoring transactions and detecting potential fraud or other irregularities. AI can quickly classify transactions as purchases, transfers, or withdrawals and assess their risk level based on various factors.

Summarize insurance policies-contracts, extract key details and provisions

Generative AI can be utilized to automatically summarize insurance policies and contracts, extract important details and provisions, and make the information more easily accessible to customers and stakeholders. The legal language of these documents can be difficult for the average person to comprehend, making it challenging for customers to compare policies or choose the appropriate one for their needs. Additionally, managing and organizing these policies and contracts can be a time-consuming process for insurance companies. However, AI-powered systems can help address these issues by using natural language processing (NLP) and machine learning algorithms to analyze and summarize policy documents, extracting crucial provisions, terms, and conditions. This information can then be presented in a more user-friendly format, such as a summary or dashboard, making it easier for customers to comprehend and make informed decisions. Furthermore, this process can assist insurance companies in streamlining the underwriting process, reducing the possibility of errors, and increasing operational efficiency.

Enabling Multilanguage and Multimodal Communication

In today's global economy, communicating across different languages is crucial, and AI can play a significant role in this process. For example, AI can automatically translate financial documents or reports into multiple languages or extract insights from various input forms like pictures or videos. By automating translation and analysis processes, AI can reduce the need for human intervention, making communication more efficient and cost-effective.

In addition, AI can help improve the accuracy of financial and insurance communication, particularly in handling sensitive financial information. AI-powered natural language processing can detect and correct errors in financial documents, reducing the risk of inaccuracies.

Summarize-classify customer feedback and direct to right channel

The finance and insurance sectors can benefit from generative AI in streamlining their customer service processes, specifically in summarizing and categorizing customer feedback and directing it to the appropriate department for further action. With various channels available for feedback such as email, social media, online reviews, and customer service calls, manually sorting through them can be a daunting task. However, AI can automate this process by analyzing and summarizing feedback, classifying it based on specific keywords or themes, and routing it to the relevant team or department. This approach can significantly improve response time and accuracy in addressing customer feedback, ultimately enhancing customer satisfaction and loyalty. Companies can use the data gathered from customer feedback to identify areas for improvement and enhance their products and services.

Tech to Enable These Transformations

To enable these transformations, companies can use Azure Open AI technologies combined with Data Lake, Cognitive Services, Machine Learning capabilities. These technologies allow companies to create personalized experiences for customers in their journey, leveraging large language models, multi-modal interaction models, and structured data. By doing so, they can simplify complex experiences, improve customer satisfaction, and ultimately drive business growth.

Here is an example architectural blueprint for the use case of summarizing financial articles using Microsoft technologies:

Data Collection: Collecting financial articles from various sources such as news websites, financial blogs, and press releases using Azure Data Factory.

Data Pre-processing: Pre-processing collected data by performing tasks such as cleaning, tokenization, stop-word removal, and stemming using Azure Databricks.

Text Summarization: Applying text summarization techniques to generate summaries of the financial articles using Azure Cognitive Service for Language Rest API.

Language Modelling: Using pre-trained language models such as GPT-4 to improve the quality of the generated summaries.

Evaluation: Evaluating the quality of the generated summaries using metrics such as ROUGE, BLEU, or METEOR using Azure Cognitive Service for Language Rest API.

Action Generation: Using Azure OpenAI’s powerful language models including the GPT-4, Codex and Embeddings model series, financial insights and recommended actions can be generated for users.

Deployment: Deploying the summarization model on a web application or API using Azure App Service for users to access the summarized financial articles, insights and action recommendations generated by using Azure OpenAI technologies.

Monitoring and Maintenance: Monitoring the summarization model for performance and making necessary updates or improvements to maintain its accuracy and relevance over time using Azure Active Directory, Azure Monitor and Azure DevOps.

AI is transforming finance and insurance industries by simplifying complex experiences, making many services available for use of everyone on the planet, empowering advisory services, creating personalizing customer experiences, enabling multilingual-multimodal communication, and ensuring compliance and security.