Although the new year has begun, trends in digital transformation seen in 2023 remain and finance leaders must have a deep understanding in such.
It is imperative that finance leaders have a good grasp of what's to come in the scene of artificial intelligence as this will impact their decision-making in the finance function.
Hani Hagras, chief science officer and head of AI business unit at banking open platform Temenos enumerated trends in artificial intelligence expected in 2024.
1. Generative AI
The rise of Generative AI promises to unleash a wave of innovation, efficiency and personalisation, revolutionising how operations and services are delivered.
This can create novel and unique services and deliver huge efficiencies for operations and change the way end user interact.
2. Responsible AI
With the rise of use of AI in finance applications, it should be expected that truly explainable AI models that are easily understood will be needed. These will be analysed and augmented by business stakeholders and regulating authorities.
There will also be a need for the outputs of such models to be easily understood and analysed by the lay user and it must be ensured that the outputs of these models are not biased (against any customer segment or demography) and that they are fair and safe.
3. Governance of AI
Most governments and regulating authorities work on putting tight governance and controls on AI development and deployment, enabling organisations to harness the full potential of AI whilst ensuring its use as a safe and useful technology, safeguarding against any adverse repercussions.Â
4. AI to Realise Financial Wellbeing
Explainable AI can help banks and financial institutions realise financial wellbeing and inclusion. As an example, lenders can use explainable AI to forecast cashflows of individuals in financial difficulty and help support them or to ensure that credit decisions are fair and inclusive or to provide tailored wealth advice.Â
5. AI to Leverage Expanding Data Sources
With the rise of Internet of Things (IoT) and social media, more data will become available about organisations and their end customers.
AI can play an important role to extract the full value from huge volumes of IoT data as well as unstructured data from social media and integrate this with transactional data on customers to provide organisations with unique customer insights and help them launch hyper-personalised products and services.
