How should banks use AI?

The conversation around AI is multifaceted, as industries and people tackle it from different perspectives. On one hand, you have enthusiasts who eagerly embrace all of its possibilities, on the other hand, you have those who are deeply concerned about AI's impact on society and employment. However, many industries find themselves caught in between, trying to find the right balance of embracing AI while still keeping the human touch. Or to ask a more important question, how should industries like banks use AI? This was a topic explored in detail at the jointly heldInteractive Customer Experience Summit and Bank Customer Experience Summit, held in Charlotte, North Carolina from Sept. 11 to 13.

Generative AI

During the opening keynote, Erin Cohee, VP of digital customer experience at OneUnited Bank, spoke about how generative AI can be useful for banks, as long as it is linked with customer data.

For example, when a customer gets on a bank's website and interacts with a chatbot, the chatbot can answer questions based on customer data such as how old their account is and if the customer prefers short answers or more in-depth answers.

However, there are potential problems with generative AI. For one, they may give incorrect or offensive answers and can potentially engage in algorithmic discrimination, especially in cases of fraud.

There are a variety of ways that algorithmic discrimination can impact customers. For example, an AI program might decide that senior citizens are more likely to default and thus downgrade their access to credit, according to a report by Levity.ai. This can also lead to gender bias as well, since Janet Hill, wife of Apple co-founder Steve Wozniak, got a credit limit of only 10% of her husband's when applying for the Apple credit card.

One solution to this issue on the generative AI side might be to get employees involved in the process. Cohee said that OneUnited in particular is looking at "not using technology to give exact responses, but rather suggest responses which agents can send if they are appropriate."

Replacing employees?

Many have suggested that AI will ultimately replace human workers, but panelists at a variety of panels at the summit disagreed with this assessment.

Elad Inbar, founder and CEO of RobotLab, pointed out during a panel that robots in particular are "not here to replace people, they are here to fill gaps."

He gave the example of in a restaurant a robot can deliver checks or utensils to patrons, which would normally take several minutes for an employee to do. This, in turn, frees up servers to perform other tasks.

For AI more generally, Inbar identified it as being a way to help humans process data and make a decision based on that data.

Steve Lieber, VP of franchise business development at BurgerFi, said during a panel that ChatGPT "improves my productivity by 40%."

Solving customer problems

So if AI isn't meant to replace employees, what is its true purpose, and how should banks use it?

As Inbar pointed out, AI is meant to free up resources and solve problems, an insight other panels agreed with.

During a panel on improving the customer journey, panelists pointed out that AI should be used to solve real customer problems. In order to do this, banks need all of their teams involved in the decision process with AI.

Lindsey Ogan, CMO of Stride Bank, said banks need "people people" at the table when discussing AI, not just the technology team.

"Everyone is wringing their hands. What is to become of the people people in the age of machines? You need a people person at the technology table."

She further emphasized that while technology teams are considering the possibilities of AI, banks need to "connect possibilities to problems your customers have."

One example of this would be accessibility. If customers with various impairments are having trouble accessing a banking platform, banks should use both personal insights and AI to identify and fix those issues.

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