Swiss bank UBS is embracing artificial intelligence in its operations. Sabine Keller-Busse, head of UBS's domestic business, has revealed the transformative impact of artificial intelligence (AI) on client interactions within banking during remarks at the Point Zero Forum in Zurich shared by Reuters.
Keller-Busse likened the evolving dynamic to patients arriving at a doctor's office with specific health information, illustrating how clients now use AI to generate ideas they propose to the bank.
She emphasized that AI, mainly through tools like Chat GPT, generates richer data insights that increasingly shape banking practices.
UBS has actively integrated AI into its service offerings, including a recent pilot program launched in 2023 to provide instant credit to small and mid-size companies urgently needing liquidity. This initiative bypasses traditional credit processes, streamlining approvals and accelerating service delivery.
Keller-Busse noted that these innovations mark just the initial stages of AI's potential in banking.
AI in Banking
Since major banks like UBS have integrated AI capabilities, central banks now face a pressing imperative to do the same.
According to The Banker, the Bank for International Settlements (BIS) urges the banking sector to use AI's potential in global finance, especially by enhancing data analysis and operational efficiency.
Already, AI is projected to add substantial value to the sector annually, primarily through improved productivity and enhanced risk management capabilities.
However, South China Morning Post analysts believe the journey ahead for central banks is rife with challenges. The rapid adoption of AI introduces new risks, including cybersecurity threats and the potential for biased decision-making rooted in flawed data sets.
These risks include cybersecurity threats and the potential for biased decision-making based on flawed data, which could undermine financial stability and harm public trust.
The analysts suggest that central banks must take careful steps forward to address these challenges. This involves rearranging their internal capabilities through training and forming strategic partnerships. It should also include effectively navigating regulatory frameworks to ensure that AI deployment respects privacy rights and promotes fair access to financial services.
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