The future of AI in banking is not as clear as you might think

• Key insight: Even the leaders of the largest banks in the country can’t agree on the impact artificial intelligence will have on the industry. But there are some steps everyone can take to ease the transition.
• Forward look: Leaders should be asking their people what they’re seeing, what they’re concerned about and where they believe AI might actually help them do their jobs better. The people closest to the work often have the clearest view of both the opportunities and the risks.

I recently had the opportunity to deliver the opening keynote at a national conference for a professional association outside the banking industry. Out of curiosity, I asked the several hundred people in the audience if any of them worked in banking. Maybe 10 hands went up.
I knew that would be the case going in, but I wanted visual confirmation. I smiled as I thought about the hundreds of times over the years that banking leaders have told me that most of my subject matter and some of my more passionate proclamations are not specific to banking.

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In this instance, I was asked to speak on two subjects: organizational change management, which I consider an evergreen topic, and the humanization of artificial intelligence, which is quickly becoming one as well.

And, to be honest, helping people understand and adopt AI may be one of the biggest change management challenges of our careers.

I was particularly interested in seeing whether nonbankers would have some of the same reactions to my personal takes on everything from AI adoption to building more unified teams, improving internal communications, and even sales and business development.

Full disclosure: Regardless of the business subject I’m asked to address, I’ll always find a way to work “sales is oxygen” into the mix. There are few more objective measures of leadership effectiveness and a company’s health than whether the business is growing profitably over time.

When discussing the current state of the AI debate across industries, I shared a true story from earlier this year. While speaking at a large banking conference, I suggested that bank leaders were totally justified in being cautious and even a bit skeptical of some of the bold promises being made about AI.

Two things can be true. AI may eventually change everything. But eventually may take longer than we’re being told, and the road may be bumpier than we’re being led to believe.

Apparently, when I borrowed the quote, “Don’t ask the barber whether you need a haircut,” I sent the speaker who followed me into a bit of a tizzy. He literally stepped outside to change some of his slides to address the “AI denier” who kicked off the conference.

When I later sat near that speaker at dinner, I laughed and told him that if he had stayed in the room, he might have had a better understanding of the point I was making.

I gave him an example: Hey, I like fire. I’m a fan of fireplaces and grilling steaks over an open flame. That said, I’m anti forest fires. And for the record, I’m anti arsonist as well.

Until we have a good handle on not setting our house on fire, we need to really watch the stove.

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I was also recently invited to a CEO retreat attended by leaders of many banks, including some of the largest in the country. During his talk, the CEO of a top 10 bank solemnly vowed that his bank would never, ever allow an outside AI agent to have control over an account at his bank.

A little later, an executive from another financial services company took the stage and, in good humor, said, “Yeah … uh … good luck with that.”

The room full of bank executives and investors chuckled, but the point was made. For all the tremendous opportunities AI presents to make companies more efficient and responsive, it also creates customer protection challenges few could have imagined just a few years ago.

Therein lies one of the biggest challenges leaders face with AI. If experienced executives can’t agree on what the future looks like, imagine what employees are thinking as they try to figure out what it means for their jobs, their customers and their careers.

That’s why I’ve been reminding bank leaders at all levels that there has never been a time when consistent communication with our teams mattered more. Any new programs, policies, and practices involving AI should be clearly and continually explained. So should any restrictions on its use.

And communication needs to be a two-way street. Leaders should be asking their people what they’re seeing, what they’re concerned about and where they believe AI might actually help them do their jobs better.

The people closest to the work often have the clearest view of both the opportunities and the risks.

Afterward, people from that nonbanking audience came up to tell me they were facing many of the same challenges with AI that I had described.

Technology may change how we do business, but the fundamentals of leading people through change remain remarkably consistent.

Communicate clearly. Listen carefully. And do both often.