GenAI has killed the chatbot
“No other technology has achieved what generative artificial intelligence (gen AI) has in less than a year, and it has the potential to fundamentally change the way people think and work. With McKinsey predicting it could add more than $4 trillion to the global economy, financial services will need to adapt quickly & innovate using gen AI.”
“In 2023, we have started to see our customers use gen AI for automating back-office functions, with the focus on cost reduction. This includes chat-powered customer service recommendations. We have also started to see improved business performance through democratised insights and enabling colleagues to search through internal data to make better decisions by asking questions in human language with no need to code.”
“Looking forward to 2024, gen AI will start to transform and deliver hyper-contextualised customer experiences by deepening the understanding of customer needs and expectations. Banks & insurers can respond with more authentic and relevant interactions to vastly improve customer and engagement and loyalty. A great relief to everyone frustrated when they have to interact with today’s chatbot. This will drive revenue faster.”
“After the initial hype, there are two challenges facing financial services. Firstly, to generate business value, firms need to move early AI initiatives from proof of concept (POC) to production faster and more cost-effectively. This requires integration into decision making processes in a trusted AI ecosystem. Secondly, and most critical of all, there is a growing realisation that firms need to solve the data management challenge if they are to maximise the value of gen AI. Gartner is actually predicting that without a robust data management framework, the gen AI hype will die unless firms start to put in place a focus on high quality data and a robust governance environment to monitor the ethical use of AI.”
AI, ROI + Talent
ROI/Prioritization: In 2024, we’ll see a strong emphasis on the strategic allocation of resources to maximize returns, including carefully evaluating and then discontinuing activities that do not deliver the anticipated returns. It’s not easy, but it’s necessary. Additionally, companies of all sizes will adopt a holistic, cross-functional perspective when prioritizing their investments. Rather than each department catering to its own interests, we’ll see more departments working together, making carefully considered choices that benefit the entire organization, even if they are difficult. CFOs can best understand the overarching objectives to optimize their company’s investments from a growth-oriented standpoint. This entails smart resource allocation, efficient project management, and a relentless focus on generating the returns they expect. By doing so, organizations will move towards a more prosperous and sustainable future.
AI: Harnessing the full potential of AI will require organizations to strike a balance between value and distraction — pinpointing where the most value can be derived from AI without getting sidetracked. Achieving this balance means more companies will prioritize critical areas including product engineering, go-to-market (GTM), and core functions, where the enterprises’ investments can make the most impact. Centralizing efforts in the year ahead will optimize companies’ use of internal resources more effectively. Equally important will be designing and upholding the right governance and compliance standards, as well as sound risk policies. It’s also critical to not slow down progress while ensuring governance and risk management around AI implementation. If more companies take this approach in 2024, it will enable them to leverage AI’s transformative potential without compromising their commitment to responsible, safe, and effective utilization.
TALENT: Expect to see several companies recommitting themselves to talent development and employee retention, especially around AI skill sets. This development push should not be simply a reflection of driving towards corporate goals, but rather the cornerstone for remaining competitive. Nurturing the skills, capabilities, and professional growth of the company’s teams and individual employees will help companies don’t fall behind their competitors. Companies can create even more value by aligning their leadership teams and fostering higher engagement among their employees. While not groundbreaking, the reality is that amidst numerous distractions, it’s easy to sideline these priorities. In our fast-paced world, having a unified team with a shared vision, strong contributions, and a foundation of trust is more critical than ever.
