Plamen Lyubomirov Dzhaparov
Generative Artificial Intelligence and the Potential Benefits for Banks
Summary:
There is no doubt that the emergence of ChatGPT in November 2022 has become one of the most significant technological events in recent decades. The new-generation chat platform developed by OpenAI has caused a veritable "tsunami" of interest in its underlying Generative Artificial Intelligence (Gen AI). Business organizations in all economic areas are dramatically increasing their investments in this new technology and launching pilot projects testing its capabilities. Banks are no exception to this trend. With the vast amounts of data at their disposal and ever-increasing user demands, they are quickly realizing that Gen AI promises numerous benefits both concerning customer service and in terms of internal banking processes and operations.
This paper examines the characteristics of generative artificial intelligence by comparing it with traditional AI models that have been used in banks. The main factors that make banking the perfect place for the application of the new technology are brought out. Based on this, the analysis focuses on surveying the many potential benefits of its implementation – from improving customer experiences, through better risk management, to optimizing the work of back-office employees and developers.
