Emerj Report - Artificial Intelligence in Banking: Compliance, Fraud and Cybersecurity Lead in Investment and Current Traction
A complete landscape of AI initiatives in banking and AI banking vendor companies shows that risk-related applications are attracting 72% of the capital raised by AI vendors in banking
BOSTON, June 18, 2019 /PRNewswire/ -- Risk-related AI applications (risk management, lending, compliance, fraud and cybersecurity) account for 72% of the total $2.8 billion in funds raised for AI vendor companies in banking, according to the latest report by Emerj Artificial Intelligence Research. Compliance and fraud-related applications make up 32% of the total AI vendor landscape in banking, but banks report these applications as a mere 19% of their current AI initiatives.
Bankers today see AI as a risk-reduction technology. Their AI initiatives are likely to yield negative ROI in part because they hold naive views about AI's integration and data requirements. Banks are eager to automate compliance specifically, especially given recent data privacy laws such as GDPR.
Funding for fraud and cybersecurity 26% of the total funds raised for AI vendors in banking, in contrast to customer service, in which vendors raised merely 5% of the total funds raised. Despite this, 35% of the AI initiatives banks themselves are talking about are related to customer service. Banks are likely keeping their work with risk-related AI vendors under wraps to keep their competitors from catching up with them.
AI adoption is hard, but some use-cases are easier, such as anomaly detection, which requires banks provide less initial data.
About the Emerj AI in Banking Vendor Landscape 2019 Report
The Emerj AI in Banking Vendor Landscape 2019 Report examines over 70 AI vendors in banking and over 50 internal AI use-cases within major global banks. Combined with dozens of industry interviews, this data is used to analyze the credibility, evidence of ROI, and accessibility of AI vendors and their products.
This data is matched on top of the Emerj ontology of banking functions and the Emerj ontology of AI capabilities to clearly map investments in different application categories, such as customer service, compliance, conversational interfaces, and recommendation engines. This allows banking leaders to invest in the technologies with the highest ROI and to assess their strategy against their competitors.
Research advisors for the report include the former Head of AI at HSBC, the COO Markets and Securities Services North America at Citi, and the Senior Director of Data Products at Visa.
Contact: Emerj Artificial Intelligence Research
Phone: 1-617-945-8567
Email: [email protected]
SOURCE Emerj
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