Unlocking the Power of Artificial Intelligence: How AI is Transforming Business and Everyday Life

By Sheku Jusu-Sheriff

Marketing & Sales Manager, Africa Risk Management & Compliance Partners

Artificial Intelligence (AI) refers to the ability of machines, especially computer systems, to mimic human intelligence processes (TechTarget). Since its inception, AI has significantly transformed both individual lives and business operations, primarily by enhancing efficiency and providing insights that would otherwise be difficult to obtain.

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AI functions by processing vast amounts of data, detecting patterns, and using those patterns to make predictions, much like AI chatbots such as ChatGPT generate responses based on input data.

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In this piece, I intend to explore a few areas including the benefits of implementing AI, walkthrough a case study highlighting an organisation’s successful AI implementation and lastly in contrast discussing a case study that highlights an organisation’s unsuccessful AI implementation.

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One of the benefits of implementing Artificial Intelligence is improved decision making thanks to AI’s capacity to analyse large datasets quickly enables businesses to make more informed decisions. Unlike human analysis, which can take hours or even days, AI systems deliver insights almost instantly. This reduces biases in decision-making and equips organisations with a data-driven foundation for strategic choices. In the banking sector, AI's rapid data analysis capabilities lead to more accurate financial forecasts and risk assessments.

Another benefit of implementing AI is enhanced output quality and reduced human errors as AI systems are programmed to perform tasks with high precision and consistency, thereby minimising human errors. In fact, some studies have shown AI-powered solutions to complete tasks at a 40% higher quality rate compared to those without AI.

Lastly, a benefit of implementing AI is increased profitability as automating processes with AI can reduce labour costs by limiting the need for a large workforce. Additionally, AI's ability to complete tasks more efficiently can enhance overall productivity, leading to increased profits.

For banks, this translates to better customer service, more efficient back-office operations, lower overhead expenses and improvements in Cost: Income ratios. Implementing AI delivers benefits as shown through many examples of successful implementation of AI.

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Case Study: Successful AI Implementation

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AI has been successfully implemented in user authentication. In the banking industry, it used to be very easier for hackers to access customer bank accounts due to poor security measures such as SMS One-time Password that are 1.8 times more likely to result in frauds (ACS Providers).

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AI has been implemented successfully in user authentication to improve customer access security within the banking industry. In the past, cyber hackers were 1.8 times more successful at breaching customer accounts that relied on SMS One-time Password security controls resulting in significant levels of fraud (ACS Providers).

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However, since banks have used AI user authentication, this has reduced the threat of fraud as it uses smart tech to protect personal information ensuring that only the user of the bank account can use the account through security methods like facial recognition and scanning your fingerprint. Examples of this technology include Mastercard’s AI-powered biometric cards, which enhance security using fingerprint authentication; and HSBC which has implemented AI-based voice recognition for secure customer authentication over mobile phones which reduces the amount of fraud customers experience (Product School).

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AI is having a positive impact on banking and financial services by improving their security measures and preventing stolen sensitive data being used to hack customer accounts.

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Another example of a successful AI implementation is Customer Support. AI has been successfully implemented in customer support because it offers 24/7 customer support through chatbots and automated responses, meaning customer queries can always be responded quickly and improving the overall customer experience.

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One organisation using this type of customer service is Bank of America who have introduced Erica, (an AI virtual assistant, who deals with customer inquiries and provides financial advice). This impacts banks and financial services as it will improve their customer service with the AI chatbots being able to provide customer with answers to their queries on any day at any time.

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Although user authentication and customer service are great examples of successful AI implementation, there are numerous examples of AI being unsuccessfully implemented.

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Case Study: Unsuccessful AI implementation

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Amazon’s AI recruitment tool is widely believed to be an example of an AI implementation that was far from successful. Sometime post Go-Live, the tool was found to be judging candidates in a manner that showed a significant preference for male candidates. It seems the algorithm had been inadvertently trained to behave in this way. The system was able to learn to prefer male candidates over female candidates, by excluding any applications that included the word “woman”. The problem became apparent when several members of an all-women’s college found they were being excluded from job applications.

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Amazon’s AI system judged candidates on a star rating from 1 to 5 to decide on who the best candidates for any given role were.

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The tool was eventually scrapped in 2018 due to a persistence of the problem.

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This case highlights the potential harm that poor design and implementation of AI solutions can do. It can be just as impactful for banks and financial services. It shows how AI solutions could be problematic when implemented incorrectly; such as financial advice AI solutions potentially discriminating against customers on the basis of gender, race or neighbourhood.

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AI has the potential to transform banking and financial services by providing valuable data-driven insights, reducing operational errors, and increasing profitability. While successful implementations in areas like user authentication and customer support showcase AI’s benefits, cases like Amazon’s recruitment tool illustrate the need for careful design and implementation management to avoid unintended consequences.

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With ongoing advancements, AI will continue to be a game-changer in the industry.

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References

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ACS Providers

Product School

TechTarget

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