One-size-fits-all GenAI solutions may be challenging, while tailored solutions may drain budgets. How can fintech firms strategize in the Goldilocks Zone?

Dipen Mehta, APAC Head of Banking, Financial Services, and Insurance (BFSI)

GenAI and its catalyzing of innovation will improve outcomes for product development, customer service, operational efficiency, and marketing:

    1. Value realization with shorter lead time: GenAI can shorten the lead time for product development, leading to a faster time to market and a shorter time to realize value.

    2. Faster, better decision-making: GenAI enables faster, broader access to large quantities of data, and sophisticated analytics, resulting in faster insight generation and decision-making.

    3. Improved operational efficiency: Many functions will benefit from GenAI working alongside their teams to increase efficiencies through better knowledge search-and-retrieval, and various modes of content generation, amongst others.

    4. Increasing accessibility of GenAI: GenAI is maturing quickly, and business leaders do not want to miss this moment to build capabilities and start moving GenAI into production environments.

DM: At the product conceptualization stage, GenAI is often used as a “co-pilot” for activities like understanding current user behavior, retrieving and summarizing existing and competitors’ product information, and creating suitable user personas and product requirements.

  • During the development phase, GenAI is used across the Software Development Lifecycle from writing code, documentation, testing, and deployment.
  • At the go-to-market stage, which is also integral in product development, GenAI is used for generating marketing content: text, images, animations for social media, press releases, etc.
  • GenAI can reduce the cycle time for each of these activities and the friction between them, leading to real productivity gains.
  • Customer service is also another aspect that has already started to reap the benefits of GenAI:
    • ✓When faced with complex customer enquiries, such as for complicated insurance products, call center operators can use GenAI to quickly retrieve detailed relevant information

      ✓Professionally-worded and customer-oriented email responses to customer enquiries for many questions can be generated instantly even by not-so-experienced staff.

      ✓Customer engagement cases can be summarized and analyzed quickly by GenAI for management to get a quick overview of what customers’ sentiments, feedback, and complaints are.

DigiconAsia: What do you think of the dire warnings about some AI dignitaries’ urgent calls for a global moratorium on overall AI development (including GenAI), given numerous uncanny/unpredictable behavior patterns in cutting-edge self-learning systems?

DM: Calls for the global moratorium tend to relate to Artificial General Intelligence (AGI), which is somewhat different in nature to the applications of GenAI we see in the financial services industry.

That said, there are certainly risks associated with using GenAI today in the industry. According to our own experts, one example of the risks of GenAI includes model hallucinations that can lead to customers being misled or confused. Addressing this issue requires:

    ✓ Rigorous testing and continuous monitoring, compliance with regulatory frameworks, and often humans-in-the-loop at the initial stages

    ✓ Testing and monitoring conducted as part of a broader platform & operating model (including GenAI governance and Large Language Model (LLM) Ops) that is crucial to get right.

    ✓ The above steps need to build on robust IT and data governance, to enable GenAI to be successful at scale and to reduce potential deployment risks. Specialized technology partners may need to be roped in for the necessary expertise to build and implement the necessary platforms, operating models, and end-user use cases, alongside that of the largest enterprises.