Citizens Financial Group has explored numerous use cases for generative artificial intelligence, but only two have gone into production. The bank emphasizes the importance of having proper guardrails and security measures in place for their AI projects. They have created a steering committee to oversee the development of generative AI use cases and ensure employees are aligned with the bank’s strategy. The two generative AI use cases going live this year include an enterprise search tool and GitHub Copilot. The financial services industry has seen success in adopting generative AI tools for customer service, and there is a cautious approach to ensuring human oversight. North American banks, such as JPMorgan Chase, Capital One, and Royal Bank of Canada, are leading in AI innovation. Capital One takes a test-and-learn approach to explore use cases for generative AI and is investing in responsible AI research. Visa and Mastercard are also leveraging AI for risk and fraud prevention in the payments industry, with Visa launching new AI-powered tools for better payment management and Mastercard investing in cybersecurity and AI tools to combat fraud.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Generative AI use cases in banking | Adoption and implementation of generative AI in banking | Expansion and refinement of generative AI use cases in banking | Improving customer service, risk and compliance, and support functions |
| Cautious approach to generative AI in banking | Thoughtful implementation of generative AI with human oversight | Increased confidence and expertise in generative AI implementation | Ensuring accuracy and avoiding misleading outputs |
| Global dominance of North American banks in AI innovation | North American banks leading in AI innovation | Continued leadership and development in AI innovation | Capitalizing on existing infrastructure and investments |
| Responsible and deliberate approach to AI in banking | Taking a test-and-learn approach with human-in-the-loop | Careful exploration and management of AI use cases | Mitigating unforeseen outcomes and ensuring user safety |
| AI-powered risk and fraud prevention tools in payments | Adoption of AI-powered tools for risk and fraud prevention | Enhanced risk management and more secure payments | Improving risk assessment and fraud detection |
| Investments in AI startups for generative AI | Financial investments and collaborations with AI startups | Development of new AI technologies and solutions | Staying ahead in the AI industry and fostering innovation |
| Focus on cybersecurity and fraud prevention in payments | Investing in cybersecurity and developing AI tools for fraud prevention | Strengthened security measures and advancements in fraud prevention | Protecting systems and customers from potential risks |