How bank execs are leading the charge for AI
Transcription:
Transcripts are generated using a combination of speech recognition software and human transcribers, and may contain errors. Please check the corresponding audio for the authoritative record.
Chana Schoenberger (00:09):
I did have one executive tell me recently that he’d had a conversation and the upshot of it was the amount of money that you’re getting out of efficiency from AI, you then have to put back into fighting fraud and cybersecurity problems from bad AI actors. Are you seeing any of that?
Vikram Sivakumar (00:30):
More and more a conversation top of the house, particularly with the mythos conversations coming through. I think more of it, I think with the agents that are coming into market as well, you’re going to end up seeing more of it. I think the linking of the two is a bit interesting. You will have to make that investment whether you’re investing in your own AI capabilities or not. You still need to secure up the boundaries.
Kirti Choudhary (00:53):
I think it’s a bit of a balance, right? If you sort of rewind 20, 25 years when digital had first started, and there were a lot of instances where yes, people are getting benefits, but you had different types of digital fraud which was happening. I think there might be a point at which productivity will win, a point at which fraud might win. But I’d say again, in 15, 20 years when some of this becomes the new normal, we will settle at a new equilibrium.
Chana Schoenberger (01:22):
Is there something that you think banks will sort of automatically be doing with AI next year that they’re not doing now?
Vikram Sivakumar (01:31):
Wish we knew. I mean, good billion dollar question at this point. Look, I think a lot of banks, at least over the last couple of years, have come to certain areas of bets that everyone is starting to make. And the top of the house has started to prioritize it much more than say two years ago where it was probably tech led or an engineer led. That shift has definitely happened. That also means many of the banks are focusing on a few big rocks and where they want to go. And so I think that doubling down on few places and making those shifts from the tool to the org changing and how the ways are working changing are things that are going to play out. I don’t think the tools have completely gotten to the change in what a human does day to day, and that I would expect to see a lot more of going into next year.
(02:20):
Both the security and cost conversations have started and I think they will also mature a lot more going into the next year.
Kirti Choudhary (02:29):
What I’d add to that is first, I think risk governance and tolerances will start to become a lot clearer. So both in terms of customer facing and internal facing and third party facing, we will have a set of policies, procedures, as well as tolerances, which will be clearly laid out. The second one, just to echo what Wikram said, no regrets use cases will become pretty clear. So when it comes to fraud, when it comes to cyber, when it comes to customer service, when it comes to engineering, there’d be a couple of areas where this starts to become just omnipresent and almost everyone will start to follow because there will be too many scaled cases which are available. And third, I think we’ll move from a thousand flowers bloom approach to a few big bets people start to make. And we do expect there might be fintechs and potential players who might start experimenting with changing the business model itself.
