A report published by Ibec industry representative body Financial Services Ireland (FSI) has highlighted the opportunities for the sector presented by generative artificial intelligence (GenAI) and the obstacles that must be overcome if they are to be realised.
“Generative AI is a hugely exciting technology with the potential to help companies make material improvements in their offerings to customers, as well as their innovation capabilities and overall productivity,” says Patricia Callan, Ibec head of sectors and director of FSI. “There is a wide range of potential uses for GenAI, so we decided to produce the People at the Helm: Harnessing the Benefits of AI in Irish Financial Services report to illuminate the topic for our members, and also to assist them in their planning for using this technology to benefit their customers, workforce and overall business objectives.”
Callan sees harnessing GenAI as being vitally important to the future competitiveness of the industry. “At the firm level, we know that customers have increasingly high standards and expectations in relation to the digital services that they receive,” she says. “It’s critical that Irish-based firms leverage the latest technology to ensure that they continue to lead the way on digital services.”
At the sector level, it’s an opportunity to build on the progress that has been made in terms of investment and job creation in the sector over a number of years, she continues. “With its highly skilled workforce and strong track record in both financial services and tech, Ireland can be the location of choice for firms looking to build out their AI capabilities.”
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The report identifies three key opportunity areas. “First, GenAI presents opportunities to deliver greatly enhanced experiences to customers, including increased speed of service, more personalised engagements across a range of areas, and improved customer service,” says Callan.
“Second, it can accelerate innovation as the driving force for new ideas and products, helping firms to create more value for customers. Faster prototyping and deployment will also present firms with a competitive advantage.
“Third, it can assist with productivity and efficiency. Gen AI can optimise time-consuming tasks like data entry and document processing, accelerating operations and allowing employees to focus on other items that can deliver higher value to consumers.”
Among the challenges to adopting the technology is a lack of skills and talent. “At FSI, we have been encouraging firms to upskill their workforces,” says Callan. “Another barrier is the fact that some firms may have legacy IT systems that are not set up to use AI properly, so this is an important area for firms to look at. A third key issue is that firms will need to put in place new policies and procedures to ensure that they are using the technology in a way that is compliant, builds trust with staff and customers, and mitigates risks.”
To overcome the skills challenge, the report recommends that firms support their existing workforces with upskilling and reskilling programmes. “A culture of collaboration and trust in the technology will be important – showing employees how this is a support tool to help them do their jobs more efficiently, thereby freeing up time for other ways to add value,” Callan points out. “Transparent communication around a firm’s vision for AI is critical.”
On IT systems, firms should ensure they have a strong digital core that will drive a competitive offering, including the usage of AI. “Cybersecurity is a critical part of this and should be built in by design.”
Firms should have a conscious and deliberate strategy to use AI in a way that creates value but also fosters trust and safeguards against risk, Callan advises. “Strong policies and procedures, as well as transparent communication, will be key to building resilience as well as trust among staff and customers.”
She acknowledges that many firms are still struggling to identify profitable use cases for the technology. “When things are developing and moving so fast, it’s natural that there will be challenges in moving from theoretical applications to real-life, value-generating usage in practice. That’s why we wanted to compile and publish this report – to help firms on this journey.”
There are rich rewards on offer for those businesses that do identify value-creating uses. “The potential benefits are enormous in terms of competitive advantages for the firms that are located here – better products and services for Irish customers, a more attractive environment for FDI investment, and many more benefits besides,” says Callan.
The country overall stands to benefit as well, she says: “We can continue to build Ireland’s reputation as a technology and financial services hub. To seize the moment, a collaborative approach is required between industry, government, regulators and other stakeholders to make sure we can take advantage of the many opportunities that exist, while also building trust and excitement among society as a whole.”
