Generative Artificial Intelligence (AI) has rapidly emerged as a transformative force in the business landscape, reshaping operations, enhancing productivity, and driving innovation across various sectors.
The adoption of generative AI has seen a significant uptick across multiple industries. Businesses had been on AI adoption path for some time now, but generative capabilities have accelerated this adoption. A McKinsey survey conducted in 2024 revealed that 65% of organizations are regularly utilizing generative AI, nearly doubling the percentage from about a year ago.1
This surge indicates a growing recognition of the technology’s potential to enhance business operations. Businesses are looking at generative AI for various benefits. And this includes our customers, who are increasingly looking at AI to deliver the promise and the value across key areas of customer experience, operational efficiency, and intelligent forecasting.
At SunTec, our AI capabilities are not an after-thought. Rather our core architecture is based on intelligent entities, which is a unique architectural proposition as an intelligent entity forms the building block for Gen AI capabilities. This helps businesses realize key benefits such as:
- Enhancing Productivity and Efficiency
Generative AI is instrumental in boosting productivity by automating repetitive tasks and providing decision-making support. AI can help bridge skill gaps and accelerate employee development. We at SunTec are already working with in-built code generators that help our engineers spend more time in design thinking and let GenAI capabilities translate those designs to code. While this increases efficiency, it also gives us an opportunity to utilize real intellectual capital of our workforce.
- Driving Innovation and New Business Models
Generative AI is a catalyst for innovation, enabling businesses to create new products, services, and business models. While companies are currently exploring automation aspects of AI, its full potential lies in creating new AI-driven business models, with significant efficiency gains expected as the technology advances. Our customers are increasingly asking for accurate historical analysis coupled with intelligent prediction and smart recommendations. Our platform allows this by design – it enables our customers to recommend products and services that are best suited for their clients and their business based on context.
- Workforce Implications and Skill Development
The integration of generative AI into business operations has significant implications for the workforce. While there are concerns about job displacement, evidence suggests that AI is augmenting human capabilities rather than replacing them. As we have found at SunTec, by using code generating capabilities our workforce is empowered to spend more time on “thinking” instead of being caught up in repetitive tasks. They are focusing on first time right designs, thinking about repeated roadblocks that need automation or thinking about enhancing code generation capabilities. Generative AI tools as “assistants” can be very handy and help teams focus on more challenging and interesting tasks.
Generative AI in Banking
Let’s take a closer look at how AI and specifically the generative capabilities are impacting the banking sector. In our conversations, we find that our customers want to stay ahead of the competition by enhancing their customers’ experiences, improving operational efficiency, reducing risks, and creating new revenue opportunities. AI with its ever-increasing value and capabilities will undoubtedly play a crucial role in helping us and our customers meet these goals.
- Customer Experience Enhancement
Generative AI is transforming customer interactions by offering hyper-personalized services, conversational banking, and improved query resolution.
- Conversational AI: Chatbots and virtual assistants powered by generative AI provide 24/7 customer support.
- Personalized Insights: Generative AI analyzes customer behavior to offer tailored financial advice. For instance, banks use AI tools to provide insights on spending patterns and suggest savings plans, enhancing customer satisfaction.
At its core, our platform is designed to seamlessly integrate with a virtual assistant to provide customer support that is intuitive and contextual. Each of our entities is designed for intelligence that keeps improving as more and more scenarios are encountered through transactions and interactions.
- Operational Efficiency
Generative AI automates manual processes, thereby reducing costs and improving efficiency in various banking functions.
- Document Processing: AI models like GPT-4 and others process unstructured data from forms, contracts, and applications, saving time and reducing human error.
- Fraud Detection: AI generates predictive models to identify fraudulent activities in real time. AI-driven fraud detection systems can help banks by identifying anomalies in transactions before they result in significant losses.
Our intelligent entity framework allows for models to be built on top that can detect anomalies and flag discrepancies. This intelligence is at the heart of our AI capabilities, and it powers some of our key capabilities like pricing process, offer recommendations, and dispute prevention.
- Risk Management and Security
Banks face stringent regulatory requirements, and generative AI helps manage risks and ensure compliance.
- Automated Risk Assessment: AI models simulate stress scenarios, predict loan defaults, and evaluate credit risks.
- Behavioral Analysis: AI monitors transaction patterns to detect unusual activities.
- Threat Identification: AI generates threat models to predict and mitigate cyber risks.
Detection of unusual/suspicious activities, correction, and prevention of such activities in future is one of the top needs of our customers. And with the threats rapidly evolving, a statis threat detection and correction system is not a solution anymore. The system must be AI enabled, so that it self-learns as threats evolve, and provides the necessary corrective and preventive insights without customer intervention or investment. Our platform is equipped with robust capabilities like “self-healing” and “time series” entities that allow for AI models to detect, flag, build insights, and recommend actions. By way of learning, it can also prevent such activities in future.
Outlook
The economic implications of generative AI are profound. McKinsey estimates that generative AI could add $2.6 trillion to $4.4 trillion annually across various use cases.2
The trajectory of generative AI suggests continued integration into business strategies, with advancements in AI models and computing power expanding its applications. The integration of generative AI in banking is expected to grow exponentially. Gartner predicts that by 2027, AI will influence 75% of customer interactions in banking.3
We at SunTec, are prepared for this exciting future. By embedding AI principles in our core entity designs, we have built a platform that is AI ready, for now and for the future. Enterprises often struggle to derive optimal value of AI for their own and their customer business, because the approach is often an afterthought. They usually look at onboarding AI as an integration activity whereas it is a design activity. It’s not so much about what AI tool can be used, but about whether the base design is compatible with AI principles. Our entity-centric design provides for a perfect base on which AI as a design strategy can easily be on-boarded regardless of the technology or the tool.