Financial services and insurance leaders confront AI growing pains as focus shifts to large-scale integration
25 Gennaio 2024 - 2:33PM
The largest financial services firms and insurance carriers are
all-in on artificial intelligence (AI), with the vast majority
(91%) launching point solutions and proofs of concept over the last
year. However, according to new research conducted by EXL [NASDAQ:
EXLS], a leading data analytics and digital operations and
solutions company, challenges with accessing siloed data and
concerns about risks associated with the technology are preventing
large-scale, enterprise-wide integration.
The research, published in a report entitled 2024 EXL Enterprise
AI Study: Bridging Strategy and Operations is based on a survey of
158 C-suite and other senior decision makers engaged in strategy,
technology and business process at the top 20 non-bank lenders, top
100 insurance carriers and tier 1, 2, and 3 financial institutions.
Its findings shine a spotlight on key focal points for AI and
generative AI (GenAI) development as well as the challenges and
obstacles they are facing as they implement these solutions
throughout their businesses.
Following are some of the report’s key findings:
- AI Pilot Projects Abound, But Most Remain Narrowly
Focused: Amid a flurry of AI experimentation, just over
one-third (36%) of financial services and insurance firms have
implemented company-wide AI initiatives, while the majority (55%)
have implemented AI for limited functions within their
organizations.
- Business Development, Risk Management and Internal
Operations Top Use Cases: Among firms that have integrated
AI more widely into core business functions, the key areas of focus
have been marketing and business development (47%), risk
management/fraud detection (43%) and internal operations, such as
claims management (42%) and back-office billing and payments
processing (37%).
- Data Silos Hinder Company-Wide AI Integration
Efforts: Among firms that have implemented AI for limited
functions, 74% say data silos have been a barrier to
enterprise-wide implementation. Among that group, 33% say data is
siloed within each business function and 41% say data is siloed in
some business functions but shared among others.
- Trust Remains a Challenge for Large-Scale GenAI
Projects: A total of 54% of total study respondents have
implemented GenAI projects, with 27% having implemented them
narrowly and 27% implementing more widely across business
functions. Respondents’ biggest concerns regarding the use of GenAI
are algorithms operating outside of intended parameters (44%),
potential for new regulation to emerge (43%) protecting customer
data (42%) and risk of biased decision making (42%)
- Top GenAI Use Cases Focused on Product Development,
Customer Experience and Risk: Among firms that are already
using GenAI, the top business functions being targeted are product
development (93%), customer care/experience (82%), human resources
(82%) and corporate strategy (75%). Among firms that plan to
incorporate GenAI over the next 24 months, the top areas where they
will be focusing the technology are regulatory compliance (52%),
risk management (52%) and corporate strategy (52%).
“The findings of this report are very much aligned with what
we’re seeing in our interactions with clients. Virtually every
business leader recognizes the enormous potential in AI,
particularly GenAI, and they are committing significant resources
to build new solutions,” said Vivek Jetley, executive vice
president and head of EXL analytics. “However, the number one
obstacle preventing these projects from getting from concept to
fully integrated, enterprise solution is data. Data is still too
siloed and often locked in legacy systems, so businesses need help
integrating that data so they can unlock the full power of AI.”
The full report, 2024 EXL Enterprise AI Study: Bridging Strategy
and Operations, can be accessed here.
About EXL
EXL (NASDAQ: EXLS) is a leading data analytics and digital
operations and solutions company that partners with clients to
improve business outcomes and unlock growth. By bringing together
deep domain expertise with robust data, powerful analytics, cloud,
artificial intelligence and machine learning, we create agile,
scalable solutions and execute complex operations for the world’s
leading corporations in industries including insurance, healthcare,
banking and financial services, media, and retail, among others.
Focused on driving faster decision-making and transforming
operating models, EXL was founded on the core values of innovation,
collaboration, excellence, integrity and respect. Headquartered
in New York, our team is over 50,000 strong, with more than 50
offices spanning six continents. For more information,
visit www.exlservice.com.
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Statements
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