Generative AI may be the darling of every sector but in highly regulated industries like banking and insurance the risks are more fraught and the rewards potentially exponential.event in Boston for a candid reality check on market appetite for generative AI and what could and should happen next.shows that generative AI could surpass the added value that financial services generate from other AI and analytics technologies, totaling up to $340 billion.
The catch is that financial services are much more regulated than other industries. This doesn’t just limit how companies can use generative AI to search and summarize data insights or hyper-personalize customer marketing campaigns. Companies need to meet more stringent regulations around decision-making transparency, accountability, and especially important with generative AI, explainability. Unlike other industries, financial services cannot be a black box.
“When talking to customers in the active exploration stage, many tell us that it’s easy to get caught up in what somehave called pilot purgatory,” said Katharina Muellers-Patel, global general manager, service and financial services industries at SAP. “To move forward, organizations should first obtain board-level support for the company’s AI aspirations. Map out a strategy for business model reinvention that includes how AI will impact revenue and the customer experience.