The use of Artificial Intelligence (AI) and robotics in businesses is increasing rapidly and it’s transforming operations in modern business processes. These technologies have already proved themselves with the advancement in self-driving cars, virtual assistants, machine learning concepts and more.
The Australian wealth and retail banking sectors are set to experience a reduction in full-time staff due to the increased use of automation and AI technologies. This will lead to a shift in human capital management strategies, with the Australian Government reporting that, in a 2019 Deloitte report, 79% of Australian businesses believe AI will be “very” or “critically” important to their business.
Companies need to focus on developing skills in their employees that complement technology rather than replace it. Newer roles within these industries will require individuals with strong business acumen, technological know-how, data analysis capability and an understanding of how technology can be leveraged effectively.
The financial services sector is a good fit for AI adoption. AI can help with back-office processes, including compliance, customer service and data analysis. For example, AI could be used to identify fraudulent transactions in real-time or examine customer habits in order to provide custom advice on savings and loans.
The use of robotics will also have an impact on the financial services sector because it helps automate manual tasks like process outsourcing or information management by providing faster response times than humans could ever achieve.
Scale and complexity are key drivers for the early adoption of AI by large businesses
Even though AI is well-known, there are still questions about what it can and cannot do. For example, some people believe that AI can be used only in specific domains and not across industries. In fact, some companies have found that it's easier to apply AI across their entire business than in just one area (such as finance or sales).
When considering their use of AI and robotics, businesses need to consider three key drivers: scale and complexity, data availability, and employee numbers.
The most common use of robotics and intelligent automation is to improve customer service, which is practical, given how many businesses have shifted their focus from product sales to services. The second most common use is marketing, followed by forecasting.
The benefits of AI and robotics for businesses are numerous. Businesses that use AI and robotics will be able to achieve:
- Better customer service – AI can help businesses anticipate customer needs, allowing them to offer a greater range of services. For example, many banks offer 24/7 customer support via chatbots or virtual assistants such as Siri and Alexa, that can answer basic questions about the bank’s services.
- More effective marketing – by performing data analysis on their customers, businesses will be able to tailor their marketing campaigns more effectively than ever before—for example, through email marketing or social media advertising.
- More accurate forecasting – an analysis of employee productivity in real-time allows businesses to predict more accurately how many products or services they need to produce over the next month or quarter based on demand from previous months/quarters. This means fewer stockouts—and happier colleagues!
However, many businesses aren't convinced that AI will deliver benefits across the board
According to a recent survey by Forrester Research, only 28% of enterprises surveyed have begun an AI initiative and only 6% are planning to do so in the next 12 months. For those corporations that are hesitant about investing in new technology, it's important to understand why AI could provide both cost savings and revenue opportunities.
AI can be used to increase productivity and efficiency for businesses by performing data analysis at scale and automating repetitive tasks more quickly than humans can do them manually. Automation could allow businesses to achieve greater levels of accuracy for certain processes like scanning through large volumes of documents or video footage, which, while it may be perfected yet, requires less human oversight than performing those processes manually.
Artificial intelligence can help your company streamline its processes and make it more future-forward
There is huge potential for increasing AI and robotics in business. However, it’s important to remember that these are just tools: they won’t replace your existing systems overnight, but they can help you make the most out of them. By integrating your processes with these technologies, you can improve your efficiency and operational effectiveness while remaining compliant with industry regulations—all at a lower cost. The best part? Most companies don’t need any new hardware at all–software like SS&C’s solutions can be deployed within a company’s existing infrastructure.
Download our "AI & RPA in Fund Servicing: The Application of Artificial Intelligence (AI) to Fund Operations" whitepaper to find out how these tools can help you achieve greater efficiency and accuracy across your business.
Written by Shaun McKenna
Senior Director, Product, Sales, and Client Relations