Generative Artificial Intelligence and the Potential Benefits for Banks

Authors

Keywords
generative artificial intelligence, large language models, deep learning, banking, customer experience

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.

JEL: G21, O30
Pages: 18
DOI:  https://doi.org/10.58861/tae.di.2024.2.03

More titles

  • Agrarian Contracts, Process of Contracting and Contractual Order

    In modern conditions, much of the relationship between agrarian agents, and agricultural activity in general, is governed by some forms of contract. However, economic analyzes of agrarian contracts in Bulgaria are incidental, limited to individual types of contracts, and detached from the process of contracting and contract imlementation, and ...

  • European Policies for Multilingualism

    The present study aims to present contemporary European multilingualism policies. In the spirit of European values, the quest for knowledge is directed towards the development of language competences in more than one of the European languages. These policies are gaining momentum especially after Britain's exit from the European Union. The purpose ...

  • Research Geographic Expansion Opportunities for Businesses through Alternative Network Strategies

    The research aims to analyze the opportunities for geographic expansion through the implementation of network company strategies. The expectations are that focusing on vertical and horizontal integration will offer a comprehensive understanding of this critical aspect of enterprise growth. Innovative approaches such as vertical and horizontal ...