Look back and move forward: Gen AI trends and takeaways
- Gen AI is shiny, new, and promising, but for most of last year, the technology has been unable to find its way into deployment and is currently in the testing and ideation phase in banking.
- Will 2024 be any different for Gen AI and who is in the best position to leverage it?
Early 2023 saw the entrance of a new creature in the world of technology, Gen AI. And while the tech captured many people’s imagination, for most banks Gen AI use cases are in the proof of concept stage rather than deployment, which is why Gen AI isn’t coming to your nearest bank anytime soon.
Here is how the industry reacted to Gen AI last year and how it expects it to develop in 2024:
Cautious as ever
Banks aren’t jumping on the Gen AI bandwagon at least as far as customer facing touchpoints are considered, but quite a few have started to experiment with the tech in back-office tasks. The reason? “Scaling generative AI and realizing its full potential will take time, as banks determine the appropriate governance and risk controls in implementing this technology,” said Val Srinivas, Banking & Capital Markets Research Leader at the Deloitte Center for Financial Services of Deloitte.
There are also quite a few things to hammer out before ChatGPT becomes a suited banker. “Many issues must be addressed to make it ready for business – data privacy, lack of transparency, hallucinations and data reliability, and more. It’s important for fintechs to be responsible and ensure that information is accurate, unbiased, and trustworthy,” Mike Storiale, VP of Innovation Development at Synchrony.
The majority of the industry is currently in the “proof of concept” stage rather than deployment, when it comes to Gen AI. And the reasons for the slow takeup are not just limited to hallucinations and data related issues like privacy and bias.
