Retooling Financial Services for 2021 and Beyond
2020 was the year of disruption. It was the year that redefined digital transformation from being a competitive advantage to table stakes. It’s no wonder that The Economist Intelligence Unit found that financial services companies expect to increase investments in artificial intelligence (AI) by 86% over the next few years in order to reduce costs and drive growth. However, knowing where to invest doesn’t guarantee success. According to NewVantage Partners, only 12% of businesses have deployed AI capabilities into widespread production. In other words, for most businesses, AI has no significant impact on day-to-day operations.
In our last post, we discussed why machine learning should be a part of every company’s toolkit. Machine learning is one technique that can be applied by AI to make more intelligent actions. The challenges hindering machine learning adoption affect AI deployment more broadly:
- Lack of clarity and focus
- Lack of the right resources and technology
- Lack of stakeholder buy-in
Over the next few months, we’ll take a closer look at how mid-market companies can overcome these challenges to realize ROI for AI and position themselves for growth in 2021 and beyond. Today, we’ll start to tackle lack of clarity and focus. In the new normal, not only do businesses need to adapt to shifting consumer preferences, but also do so with smaller budgets and hiring freezes. As a result, businesses cannot afford the luxury of exploratory projects with unclear objectives. Therefore, businesses must first define a clear use case and by use case, we mean action or series of actions that directly impact your bottom line. Another way to think about it is asking: Will acting faster and/or smarter in this area of my business lead to more revenue and/or reduced costs? If the answer is yes, then you’ve identified a good use case for AI. We at Enova Decisions like to focus on operational tasks, complex but repetitive actions, because incremental improvements to your daily decision-making compounds quickly. We’ll examine examples of use cases in fraud detection and prevention, credit decisioning, and collections management in the next few posts.
Already have a use case in mind but don’t know where to start?
Contact us today to learn how we can help you deploy AI so you can act smart AND fast.