Artificial Intelligence Knowledge: Mastering the Essence of Context is Now the Latest Trend
In a groundbreaking development, generative AI has made its way into the mainstream of finance, with ChatGPT leading the charge in November 2022. This advanced technology is not only revolutionising the industry but also proving crucial, especially in regulated environments like banking.
Last year, a remarkable fusion of agents, generative AI, and blockchain technology propelled the transaction volume of stablecoins beyond Mastercard's global payments, signifying the significant impact AI is having on the payments ecosystem.
One bank at the forefront of this transformation is Landesbank Baden-Württemberg (LBBW), where Chief Innovation Officer Stephan Paxmann is building internal GenAI systems. These systems are being utilised to summarise documents, generate reports, comment on documents, and create bullet points from complex text.
Paxmann emphasises the benefits of data compatibility and accessibility that generative AI brings to finance. Furthermore, LBBW is piloting a GenAI-based credit documentation process, aiming for a 60% to 65% reduction in time for credit applications.
The core payment transaction remains unchanged, but the ecosystem around payments is where AI is thriving. AI is being used in various ways, such as chatbots for 24x7 customer service in multiple languages, document automation for onboarding, and risk and fraud detection using pattern recognition.
As we venture into the next phase, the development of artificial general intelligence (AGI), machines will begin to possess human-level cognitive abilities. This could pave the way for autonomous agents, generative AI entities that take actions without human input, each performing parts of a specific process to complete a workflow.
Effective interaction with generative AI in the financial services industry requires a unique blend of skills. Data processing and visualisation skills are essential for handling large financial datasets, while understanding advanced AI technologies like machine learning, natural language processing, and robotic process automation is crucial.
Regulatory and compliance insight is vital for risk management and staying compliant, and financial domain expertise is necessary for effective use of generative AI outputs. Professionals equipped with a hybrid skill set of technical and financial expertise are increasingly valuable. Strategic data management, practical experience with AI tools and frameworks, and the ability to synthesise AI outputs responsibly to support business objectives and compliance requirements are also key.
Transformer-based models have made it possible to compare and process diverse data formats, including PDFs and audio files, further enhancing the capabilities of generative AI in finance.
In conclusion, generative AI is pervasively integrated into fintech and is transforming financial services gradually, empowering people, augmenting human tasks, and requiring thoughtful, responsible integration. As we continue to navigate this new era, it's clear that the potential benefits of generative AI in finance are vast, but so too are the challenges. It's essential to approach this technology with a balanced perspective, recognising its transformative power while ensuring its responsible and ethical use.
- Stephan Paxmann, Chief Innovation Officer at Landesbank Baden-Württemberg (LBBW), is employing artificial intelligence (AI) in various ways, such as using it to summarise documents, generate reports, comment on documents, and create bullet points from complex text – a practice reminiscent of the AI model, ChatGPT.
- In the SAP and SAP Fiori forum for financial services, discussions are revolving around the potential of artificial general intelligence (AGI) in financial services, a realm whose influence is already evident in landmark developments, such as the fusion of agents, generative AI, and blockchain technology propelling the transaction volume of stablecoins beyond Mastercard's global payments.
