Revolutionizing Finance: How Generative AI is Enhancing Customer Service and Tackling Regulatory Hurdles

by | Jan 30, 2024

Generative AI is revolutionizing the financial industry, allowing banks and businesses of all sizes to compete. This technology has made AI accessible to everyone, but as its influence grows, regulation and risk management become increasingly important.

According to Tim Christensen, the VP of Product, Digital, Innovation, and AI at Synchrony, generative AI is reshaping financial institutions. In the past, AI was limited to specialized teams, but generative AI brings non-deterministic technology to businesses, expanding their capabilities.

One advantage of generative AI is its predictive abilities. This allows financial institutions to enhance the customer shopping experience by providing personalized and seamless interactions.

Synchrony is leading the way in leveraging generative AI to improve commerce and customer experiences. With vast amounts of consumer data, Synchrony can experiment and enhance experiences, while also balancing automation with human interaction.

However, the adoption of generative AI in finance raises questions about risk management and regulation. Building an AI experience and adding a disclaimer is not enough; a measured approach is crucial. The regulatory landscape must evolve to accommodate AI use, especially when handling sensitive customer data.

Recognizing these challenges, Synchrony has strengthened its internal AI governance team to provide oversight and ensure ethical use of the technology in compliance with regulations.

Christensen believes generative AI will revolutionize experiences for customers and employees, but caution is necessary. Its flexibility and range of uses require careful consideration of new cases and potential risks.

As financial institutions embrace generative AI, they must navigate an evolving regulatory landscape. While AI has automated back-office functions and assisted customers, delving deeper into a person’s financial products with AI becomes riskier. Integrating generative AI requires a thoughtful approach that considers potential pitfalls and the need for regulatory frameworks.

In conclusion, generative AI is transforming the financial industry by making AI accessible and enhancing customer experiences. However, as its influence grows, institutions must manage risks and comply with regulations. With a measured approach and appropriate frameworks, generative AI can drive innovation while protecting consumer interests. The financial industry is entering a new era where generative AI will shape operations and service delivery.