Gen AI can be a game-changer for India's BFSI sector: Automation Anywhere CTO Prince Kohli

As one of the early adopters of foundational technologies, the banking, financial services, and insurance (BFSI) sector is already integrating cutting-edge artificial intelligence (AI) to create end-to-end omnichannel customer journeys. In an interview with TechCircle, Prince Kohli, Chief Technology Officer of Automation Anywhere, an American global software company that develops robotic process automation (RPA) software for banks and other enterprises, believes that generative AI will be of huge added value, especially for the banking sector. It will detect issues such as fraud and improve the accuracy of advanced services for clients, reducing costs, enhancing compliance performance, and improving the overall customer experience. 
 
How can Gen AI contribute to increased efficiency and effectiveness in the BFSI sector? 

Generative artificial intelligence (AI) has already been helpful in modernising banks' anti-money laundering processes and equipping them to combat financial criminals and global criminal funding. HSBC, for example, significantly improved its ability to detect financial crime risk by using Google's AML AI. The bank increased detection by 2-4 times and reduced false positive alerts by more than 60%. This not only enhanced their customer experience but also provided regulators with better explanations for risk findings. 

Customer interaction is another critical area in the BFSI sector. Gen AI's Natural Language Processing (NLP) capabilities can improve the process, as it can converse effortlessly and graciously with customers through automated support systems such as chatbots or virtual assistants. Generative AI is also capable of fraud detection, compliance monitoring, and data analysis. It can examine vast amounts of data, uncovering more potential violations and anomalies, thus reducing the risk of non-compliance and associated penalties. 
 
Do you think banks and financial firms in India are ready to adopt Gen AI? What do you think is the foreseeable future of this sector? 

AI has been a part of India's BFSI industry for a while, gaining advancements in risk management, credit underwriting, KYC processes, document digitisation, fraud detection, and investment strategies. To stay ahead of the competition, banks must focus on delivering personalised and contextual customer experiences and improving their internal processes. Without this digital transformation, banks will not be able to compete with modern customer expectations and new competitors. 

Besides offering customised financial advice, targeted product recommendations, and quick fraud detection, AI and automation can also help banks streamline routine tasks, like balance inquiries and password resets, allowing customer service representatives to concentrate on more complex issues. This can enhance efficiency, cut costs, and provide faster and more accurate customer support, available round-the-clock. 
 
What are the various kinds of solution mapping done by a company like Automation Anywhere for the BFSI sector? 

In the financial services sector, Automation Anywhere has mapped solutions for anti-money laundering and invoice processing. The company is also developing solutions for other areas such as transaction disputes, wealth client onboarding, KYC compliance, regulatory reporting, risk-based audit review, claims estimation, underwriting, and fraud detection. For example, BFSI companies use advanced machine-learning bots to automate policy modifications and client requests. Robo-advisors create personalised financial plans based on clients' age, goals, and risk tolerance. Furthermore, AI and automation help develop personal finance management tools and increase automated algorithmic trading for stocks, bonds, and more. 
 
How do you think AI can help India achieve its goal of building a $1 trillion digital economy in the next 3-4 years? 

The Government of India has taken several initiatives to encourage entrepreneurship, boost digital innovation, and promote technology adoption to achieve desired economic growth. One of the key factors that would primarily contribute to achieving this goal is the development of products that use automation and AI to help create a powerful, digitally literate workforce. Hence, Indian organizations should continue with skill development projects to upskill the current workforce with new-age technologies. 

The second factor is integrating automation technologies and AI-powered solutions across key livelihood industries such as manufacturing, agriculture, healthcare, finance, and logistics. Gaining citizen trust and facilitating the ethical use of data in AI and automation applications require the development of a strong data privacy and security framework, which will act as a differentiator for the services industry in which India excels.