2024-07-05 22:53:53
Latin American banks focus on using technology for customer engagement (31%) and also in risk, compliance and security operations (25%), as well as in HR, marketing and purchasing (25%)
Sao Paulo, June 25, 2024 – A new study from IBM (NYSE: IBM) Institute for Business Value (IBV) finds that 86% of banking organizations worldwide – including Brazil – are developing or preparing to go live with generative AI use cases. The majority of banks surveyed (78%) are tactically implementing the technology in at least one use case. The remainder (8%) are going further, with a more systematic and comprehensive focus on implementing AI in business.
The IBM study, Global Outlook for Banking and Financial Markets 2024explores the impacts of generative AI through an in-depth analysis of financial reports from nearly 2,000 institutions around the world, including here in Brazil. This global perspective, created with insights from IBM experts and a survey of 600 banking executives, dives into the industry landscape and examines the emergence of 19 innovative use cases for generative AI.
Regarding these use cases with generative AI in Latin American banks, four pillars dominate the survey among executives: 31% said that the application of technology focuses on customer engagement, followed by risk, compliance and security operations (25%), human resources, marketing and purchasing operations (25%) and, finally, IT development (19%).
The higher percentages of focus on compliance and customers have an explanation: globally, almost 60% of decision-makers for generative AI see greater value in risk control, compliance reporting, and customer engagement. For them, keeping data private and gaining the trust of the end user is essential to winning contracts. In addition, at the same time, more than 60% of bank CEOs worldwide point to new vulnerabilities in cybersecurity (76%), legal uncertainty related to operations (72%), difficulties in controlling the accuracy of results (67%), and bias due to model bias (65%) as points of attention for the business – which makes governance in AI essential.
In terms of customer service using generative AI, banks are focused on reducing call volume, improving complaint classification, automating and summarizing content, training virtual financial consultants, evolving credit approval processes, among other actions that improve the dynamics of day-to-day activities.
“The financial market, especially here in Brazil, remains at the forefront of innovation in new models and implementation of technological solutions. With the increase in knowledge and access to increasingly specific models for the financial industry, the impact of AI is even more relevant in its business strategies. We are already seeing new models in financial institutions integrating Transactional and Informational AI (GenAI) with multiple AI engines in order to enable new business, improve customer relationships, gain productivity in application development, develop employees, mitigate risks in IT operations, remodel their essential operations and reinforce cybersecurity”, analyzes Marcelo Flores, general manager of IBM Consulting Brazil.
Finally, the study presents 10 actions that can guide decisions regarding building the foundations of generative AI in banks. These actions align with broader processes for scaling AI across the enterprise, including machine learning, deep learning, and NLP, which includes defining AI governance and the bank’s risk profile, selecting use cases, establishing a data foundation, integrating the AI strategy with an approach to scaling the technology, among others. “We are at a time to go further and unlock ever-broader possibilities to improve business performance and efficiency with concrete results, governance, and scalability,” adds Flores.
About IBM
IBM is a leading global provider of hybrid cloud and AI and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs, and gain competitive advantage in their industries. Thousands of government and enterprise entities in critical infrastructure areas such as financial services, telecommunications, and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to quickly, efficiently, and securely impact their digital transformations. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions, and consulting provide open and flexible options for our clients. All of this is backed by IBM’s historic commitment to trust, transparency, accountability, inclusion, and service. Visit IBM site da IBM for more information.
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