Artificial Intelligence (AI) is a term used so often it is starting to sound like white noise —but is it a bunch of bull or does it really work?
McKinsey’s “AI in banking” predicts a future of efficiency, with AI reducing overall costs by 30%. IBM’s “What Is AI In Banking?” showcases tools like fraud detection saving millions. Yet, skeptics point to hype cycles and implementation woes, like the 60% of banks facing data issues (ScienceDirect).
Practically speaking there seem to be a few key use cases as reported by Google Cloud: 1) Code Generation 2) Document Summarization 3) Improved Customer Experience, and a couple more.
Is AI A Fad Or A Tool?
While these features are just the tip of the iceberg, the Wall Street Journal thinks AI is oversaturated in the market. The argument follows: the corporations that are not ready to implement AI strategies will be distracted from the real work that needs to be done at the company.
Think of it this way, you’re on a sinking boat. The boat is sinking because of a leak, you buy and install a more gas efficient motor… the problem is, you’re still sinking.
Before dismissing it altogether though, let’s insert some common sense.
Simply put, AI alone is pointless and could lead to unnecessary expenses. On the other hand, not using AI will leave you behind on the new age of efficiency. Man + machine is the winning formula. Why? Because “machines” like AI are tools, and tools across the board increase our efficiency. Think about hammering a nail with your hand instead of a hammer. Or walking to work instead of driving a car.
In the same way you need practice hammering nails so you don’t smash your thumb, and you have to practice driving to get your license, you need to practice with AI, and eventually, you will see the results.
The Banker Report 
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