6 min readFew advancements have promised as much transformative potential as Generative AI, yet despite this promise, many institutions hesitate to adopt the technology. This is not atypical for banks, as a September 2023 survey by American Banker shows that only 5% of banks pursue radical innovation involving both new technology and a new market. In the case of Gen AI, banks remain paralyzed by the pervasive surrounding hype and are unable to discern its practical applications in their specific business contexts. To become early adopters, banks should realize that Gen AI is a varied force, encompassing complex task execution, informed decision-making, process management, product innovation, and the enhancement of customer experience.
To put it in perspective, we can draw an analogy to the early days of website development in the 1990s. The world of ecommerce was not an immediate game-changer. It took many evolutionary steps over several years for ecommerce to become a juggernaut. At each step along the way, new challenges arose alongside new business opportunities. However, businesses that continued to grow and adapt as the technology matured found themselves at the forefront of the digital revolution.
Generative AI is in its nascent stages, and like those early website pioneers, it requires a strategic approach and a well-defined roadmap as well as a willingness to evolve along with the technology.
Align tech with business objectives
Business objectives are essential guideposts when adopting new technology, but they are also much more than that. In your Gen AI journey, institutional goals serve as guardrails that ensure the project is purposeful, strategic, and successful. Coordinate Gen AI adoption with the bank’s overarching goals to:
Get stakeholder buy-in – Leaders, decision-makers, and investors are more likely to support endeavors that will contribute to the bottom line and the achievement of long-term goals.
Bring legal and compliance teams on board – Establish clear usage, monitoring, and review policies to ensure data privacy and security compliance as well as to avoid copyright and ethical issues with generated content.
Develop a sense of direction – Set priorities and make informed decisions about which applications to pursue and which to set aside.
Allocate resources – Ensure investment in the right areas of Gen AI to maximize ROI and minimize wasted time and effort.
Identify measurable outcomes – Establish measurable outcomes and key performance indicators (KPIs) for Gen AI initiatives to track progress, demonstrate value, and refine strategies as you move forward.
The relationship between business and innovation in Gen AI is bidirectional. Gen AI is a tool that can help you achieve your business objectives more efficiently and effectively. At the same time, early successes shape and refine business objectives, opening up new possibilities and strategic directions that were previously unexplored.
Practical examples are the bridge between business and innovation. They demonstrate the value of Gen AI as well as guide and inform your business decisions. Tangible demonstrations of value justify the expenditure of resources, mitigate risks associated with innovation, and inspire further innovation.
Understand the road ahead
Revolutionary change takes shape over the course of decades, not months or years. Just look at the early days of websites and ecommerce in the late 20th century. Back then, it was hard to predict the influence such innovations would have on the global economy. Yet, as years went by, they became integral to our daily existence, reshaping industries, business models, and human interactions.
Adoption of Gen AI in financial services finds itself in a similar position. While the initial enthusiasm and excitement are palpable, it's crucial to recognize that this is just the start of a long journey. The technology is rapidly evolving, unveiling new capabilities, and consistently giving rise to fresh business cases and emerging opportunities.
Banks that are early adopters of Gen AI are similar to the pioneers of the internet era. They understand the importance of embracing transformative technologies from the outset. These trailblazers chart new territories, experiment with innovative applications, and reap the benefits of being ahead of the curve. Gen AI leaders are positioning themselves to redefine their industries, disrupt traditional paradigms, and future-proof their organizations.
Banks that begin the journey now gain a deeper understanding of the technology's capabilities, allowing them to hone strategies and develop Gen AI solutions to their specific needs. They build partnerships with technology providers to influence the direction of Gen AI development, so it aligns with their business objectives. As the tech matures, early adopters can stay ahead of the curve, adapt to shifting market dynamics, and innovate more effectively.
Begin the Gen AI journey
The Gen AI journey is a long one that requires collaboration between modernization and innovation teams. Much like the evolution of user experience and websites, Gen AI will evolve over time, adapting to the changing needs and expectations of both banks and their customers. The road ahead may be unclear, but with the right guidance, strategy, and partnerships, you can become an early adopter and help shape the future of financial services.
SoftServe understands the pivotal role that Gen AI plays in redefining the landscape of banking and innovation. That's why we have taken proactive steps to jumpstart efforts by forming strategic partnerships with industry leaders like NVIDIA.
We help navigate the complexities of Gen AI, ensuring the journey is not only transformative but also agrees with your business goals.
Let’s talk about how SoftServe provides end-to-end guidance and support to implement solutions that position your bank as an industry pioneer.