Generative AI (gen AI), driven by advanced machine learning models, is ushering in a new era for the banking and financial services industries. This groundbreaking technology is revolutionizing AI and automation in banking, offering efficient solutions to streamline once time-consuming tasks.

Within financial services, gen AI holds promise for enhancing customer service, bolstering fraud prevention and detection, refining reporting practices, personalizing marketing efforts, managing risk and compliance functions, improving credit scoring, and boosting productivity through the automation of manual tasks.

However, while harnessing gen AI can unlock significant business value, improper execution can lead to complications and unintended consequences. Banks must remain vigilant about issues such as the generation of false or illogical information, concerns regarding intellectual property infringement, limited transparency in the functioning of these systems, issues of bias and fairness, security vulnerabilities, and other potential risks.