Fujitsu, Hokuriku Bank, and Hokkaido Bank are setting up trials to better understand how they can leverage generative AI.
During the exploration stages, which began in August 2023 and will conclude through October 2023, the companies are using an AI module to determine if there are any “promising use cases for efficient and accurate utilization of generative AI in banking operations.”
The companies hope to implement generative AI to create responses to internal questions relating to business rules and regulations. Additional use cases include the proofreading of approval documents and testing data.
“These efforts reflect current best practice regarding Generative AI in banking,” said Christopher Miller, Lead Analyst for Emerging Payments at Javelin Strategy & Research. “The use cases for trial are at the near edge of feasibility, and some companies are already using the technology for these purposes. FI’s tend to move a bit more slowly but will likely have to accelerate their normal pace of evaluation to stay on top of this rapidly emerging—and changing—technology.”
Generative AI Is Gaining Momentum
Generative AI is poised to revolutionize the way businesses operate. It can create automatic, original content including text, images, or music.
More businesses are looking into how they can leverage this technology, and banks—in particular—are eyeing it. Earlier this year, in an annual shareholder letter, JPMorgan Chase CEO Jamie Dimon stated that the banking giant currently has 300 AI use cases in the works for fraud prevention, customer experience, marketing, prospecting, and risk.
Keeping an Eye on Security Concerns
While many may be all in when it comes to leveraging the full technological prowess that generative AI offers, there are still some hesitations among the banking community about the use of ChatGPT.
Some of the leading financial institutions have restricted the use of ChatGPT, including Wells Fargo, Goldman Sachs, Citi, and Bank of America. That’s because ChatGPT has been found to generate false or misleading information, which is not a good look for financial institutions who want to maintain the trust of their customers.
As fraudulent schemes become more sophisticated, it’s imperative that financial institutions ramp up their security strategies to mitigate fraud. The verification of transactions, real-time monitoring, and optimized authentication is proving to be even more essential now.
