Artificial Intelligence in banking: How has GenAI revolutionised business operations in BFSI sector? Expert explains

In the dynamic landscape of the Banking, Financial Services and Insurance (BFSI) sector, the integration of generative artificial intelligence (GenAI) has emerged as a transformative force, reshaping traditional practices and unlocking unparalleled efficiencies. As financial institutions navigate an era of unprecedented digital acceleration, AI stands at the forefront, offering a spectrum of applications that revolutionize the industry.

From enhancing customer experiences through personalized services to mitigating risks with advanced predictive analytics, AI's imprint on banking is multifaceted. In an exclusive interview with ZeeBiz.com, Chander Damodaran, Global CTO of Brillio, delves into the myriad uses of Generative AI in the financial realm, the trends and how it is helping streamline operations and empowering decision-makers. Here are excerpts from the interview —

Q: How has GenAI revolutionised business operations in BFSI sector?

Chander Damodaran: Cloud and AI have been the two key technology catalysts that have unlocked massive potential across industries. Specifically, in the BFSI sector, we see that generative AI is powering three types of scenarios. Firstly, it is driving scale and repeatability by unlocking productivity in engineering through co-pilot-led development and testing. Secondly, it is facilitating automation of business operations and non-critical business functions. Thirdly, it is infusing AI in product portfolios, enabling data-driven decisioning or actions around regulatory compliance, fraud detection, credit scoring, and claims processing.

Q: What are the challenges faced by the BFSI sector while leveraging GenAI?

Chander Damodaran: Generative AI presents vast opportunities in the BFSI sector. It also poses significant challenges. Hallucinations and algorithm biases can impact accuracy of results, requiring investments to incorporate reinforced learning and humans in the loop. AI is increasingly being used by bad actors in triggering large-scale data breaches and fraudulent transactions and claims, necessitating robust and proactive cybersecurity measures.

Q: How is Brillio helping BFSI companies overcome these challenges?

Chander Damodaran: At Brillio, we believe AI is no longer just a technology, but a fundamental building block fueling the future of IT. We address these challenges by ingraining data, process, and model governance to ensure no biases impact the quality of the results. We also ingrain responsible AI principles in each of our engagements with human intervention and reinforced learnings to increase overall accuracy. Further, by incorporating zero-trust principles and security at multiple levels, we ensure validated access to critical assets and data. This comprehensive approach empowers BFSI institutions to make data-driven decisions, optimize operations, and maintain trust with customers and stakeholders.

Q: What are the key Gen AI trends that we will witness in 2024?

Chander Damodaran: In the face of rapid technological changes, the BFSI sector is looking at a significant opportunity to enhance resilience and redefine market position. Three key guideposts that pave the path of BFSI sector include:

1. Build with AI: AI is not just a passive enabler but a proactive co-creator, driving innovations, personalizing experiences, optimizing operations, and reshaping industries. This theme signifies a pivotal moment where AI is a co-pilot that will see widespread use in customer experience, product engineering, and business operations.

2. Decentralize and democratize data: This signifies the transition from traditional, unified data management to a more democratized model. This approach distributes data ownership and decision-making, enhancing not only data security and privacy but also promoting more equitable access to insights, fostering innovation and collaboration on a global scale.

3. Modular enterprises: These will facilitate the seamless integration of maximizing current IT investments, making pragmatic innovation choices and data-driven decisioning, enabling BFSI businesses to respond to evolving customer needs while fostering collaboration.