AI takes Wall Street: 5 Use Cases for Gen AI in Fintech 💰

Ever notice how annoying it is to sort through the garbled metadata on your credit card statement? Why can’t you just sort by “unnecessary Amazon purchases I made after a couple drinks”?

Because that unstructured data is currently beyond your credit card’s understanding. Generative AI could change that.

But there’s a reason that fintech is moving cautiously when it comes to gen AI adoption.

“The big fear with gen AI is hallucination,” wrote Simon Taylor of Fintech Brain Food. “That's incompatible with an industry that ends in an output expressed as a number in a database.”

Or as Matan-Paul Shetrit, A.Team’s Head of Product, put it, “You’re dealing with people’s money.”

Due to its regulatory and underwriting obligations, the financial sector insists on perfection—and LLMs aren’t great at math. It’s not exactly the ideal tool for traditional finance tasks. Plus, nearly all these firms are already using other kinds of AI tech. According to one study, 90% of fintech firms were already using some kind of AI technology as of mid-2019.

But there are still use cases galore for generative AI in fintech.

A recent report from BCV predicted widespread adoption: “We expect generative AI to co-exist with and complement traditional forms of AI within financial services organizations for the foreseeable future, like sand seeping into the gaps among the stones that have been left by traditional forms of AI and other technology.”

Which is a cool if slightly confusing metaphor. To put it another way: Generative AI likely won’t be part of the core financial services, as much as it will free up workers to speed through dreary, dull tasks and use their brains on projects with higher ROI.

A16z ranked the top five use cases in a recent article:

Personalized consumer experiences
Cost-efficient operations
Better compliance
Improved risk management
Dynamic forecasting and reporting

What’s the clue to decoding this list? Rather than seeing generative AI as an end unto itself, we should see it as a component part within the larger software offering and workflow process.

For example: During our first A.Team Generative AI for Enterprise Hackathon this summer, one team partnered with Sebastian Gunningham, Chairman of the Board of Santander, to build mAI CFO—a virtual CFO for small businesses. As Paul Sangle, a Product Manager and A.Team builder in the hackathon, explained, "Our platform offers small business owners the ability to get answers to complex financial questions with customized insights."

Shetrit explained it like this: “Excel didn’t kill accounting. Excel supercharged it to do other things. I think generative AI will do that in fintech.”

With 98% of executives confirming that generative AI will play a role in their strategy over the next three to five years, workers at least know that change is coming, unlike at Twitter—oops, we mean X—where employees apparently have no idea what's going on.

CHART OF THE WEEK

How Financial Services Companies Used AI in 2022

Last year, the financial services sector saw a significant uptick in AI adoption, with over 75% of companies leveraging at least one core accelerated computing use case, according to a comprehensive report by Bain Capital Ventures.

JPMorgan Chase CEO Jamie Dimon revealed that the bank was investing "hundreds of millions of dollars" in AI.

GEN AI EVENTS

T-5 Days Until Our Healthcare Generative AI Salon

Join us on August 1st, as we discuss the powerful intersection of AI ethics and healthcare at our third Generative AI Salon hosted in partnership with Baseten.

At this hybrid event, we’ll hear from Juliette Powell, AI ethicist and author of "The AI Dilemma," who will provide a thought-provoking discourse on AI ethics. Then Leo Grady, the godfather of AI in healthcare, will share his expert analysis of AI's transformative potential in the health sector.

Don't miss out on the chance to engage with these renowned speakers!

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