INF80042: Technological Essentials for Managers - AI in Banking

This report, prepared for the Technological Essentials for Managers course (INF80042), examines the definition and applications of Artificial Intelligence (AI) in the business world. It begins by defining AI and then explores the potential for improvements in business processes through AI implementation, particularly within the banking industry. The report highlights real-world examples, such as Bank of America's use of AI-powered virtual assistants like Erica to enhance customer service and streamline operations. Furthermore, the paper discusses the broader societal impacts of AI, including its effects on employment and the evolving nature of work. The conclusion summarizes the key findings, emphasizing AI's transformative role in modern business and its impact on various aspects of society. The report draws upon academic sources to support its arguments and provides a comprehensive overview of the topic.

IT Write Up
Technological Essentials for managers
3/24/2019

Technological Essentials for managers 1
Contents
Introduction......................................................................................................................................2
Definition of Artificial intelligence technology..............................................................................3
Potential improvements in business processes because of the implementation of AI.....................3
The broader impact of Artificial intelligence on society.................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Technological Essentials for managers 2
Introduction
The aim of the paper is to throw the concise opinions on definition related to technology system
as well as the concept that is Artificial intelligence. In addition to this, the paper throws light on
the potential improvements that are related to the business processes because of the
implementation of Artificial intelligence in the banking industry. The banking industry is
emerging due to which the use of technology is increasing by companies that are witnessed with
the help of real-life examples. Moreover, the impact of Artificial intelligence on society is
discussed in the paper.

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Definition of Artificial intelligence technology
Artificial intelligence is considered as the ability of the computer program or a machine that has
the ability to think as well as learn. This technology is an area of computer science that majorly
focuses on the formation of intelligent machines that perform work like a human (Russell, SJ &
Norvig 2016, p.95). Some of the activities computers with the AI is designed which include:
 Learning
 Problem-solving
 Planning
 Speech recognition
In this artificial intelligence technology, the machines are able to perform some of the simples to
the complex stuff that is generally performed by humans on a daily basis. This technology helps
the companies to complete the work in the faster as well as accurate manner (Steels & Brooks
2018, p. 109). The major motive behind the implementation of this technology is error free as
well as the efficient world. Thus, artificial intelligence is essential for the business processes as
well as their operations on a regular basis.
Potential improvements in business processes because of the
implementation of AI
In the present world, the organisations are constantly trying to bring the improvement related to
the internal processes, products as well as the services. This improvement occurs with the help of
artificial intelligence within the organisation (Sloane 2018).

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It is a fact that banks perform numerous activities on a regular basis that are required to do
accurately. Most of the activities take plenty of time as well as efforts from employees and might
lead to an increase in the chances of the errors. The major activities, which are performed by
banks in the industry, including investing the amount in stocks, financial, operations, managing
the different properties, fulfilling the needs of customers and many others. The implementation
of the AI system in the process makes the organisation accomplish the results in an efficient
manner with a quick turnover time. For instance: Bank of America celebrating a decade of the
mobile banking in the present year recently made a push into the AI technology with the debut of
an intelligent virtual assistant which is named as Erica (Sennaar 2019). Erica is chatbot who is
leveraging the predicting analytics as well as the cognitive messaging with the motive to offer
financial guidance to the company to more than 45 million customers.
Mobile banking is growing from 12 million customers in the year 2012 that is nearly to 22
million in the year 2016 that is considered as one of the key representation of the investment by
the company in the technology (Aguis 2018). Further, this has been found that the strategic
implementation of this technology in the banking industry supports to the banks to help them in
emphasising on every customer with the motive to provide a quick resolution. This makes the
customer happy many times because they are able to get the quick service for all the financial as
well as the banking needs. For instance; Bank of America, implemented AI to enhance the
banking experience, Erica is designed to be easy access to the client’s 24/7 with the motive to
perform the daily transaction. This shows that artificial intelligence has effectively contributed in
improving the banking organisation process by effectively understanding the unique financial
needs of every customer and helping them to achieve the financial goals by offering them smart
recommendations (Aguis 2018).

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The broader impact of Artificial intelligence on society
The emergence and rise in the use of Artificial intelligence technology lead to either positive as
well as the negative impact on the working of society. This has been found that the rise in
artificial intelligence is likely to reduce the need of the employees within the organisation. This
is considered as one of the major impact on society due to the use of AI (Cath, Wachter,
Mittelstadt, Taddeo & Floridi, 2018, p. 511). Petropoulos state that the needs of the middling
jobs, which include clerks, machine learning, as well as assemblers, are reducing because of the
ruse in machine learning.
In addition, this is found that the impact of technology breakthrough on the labour market. For
instance; AI and machine learning could take away the jobs but the possibility of produce more
is leading the positive impact on the employment as well as one the emerging industries.
However, the research from the McKinsey Global Institute said that the disruption within the
society is caused by the emergence of AI that is happening 10 times faster and at 300 times the
scale as the Industrial Revolution. For instance, Mobile apps and features instance help like Erica
(Bank of America's virtual assistant) reduce the need for employees.
Further, the rise in the use of AI in our society will improve our lifestyle and form more efficient
businesses. This has been found that mundane tasks like acknowledging the emails as well as the
data entry will be done by the intelligent assistants. Thus, AI is enhancing the value for people in
society in this way.

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Conclusion
In the end, this can be concluded that the emergence of technology has brought numerous
changes in the organisation as well as in their working. This has been found that Artificial
intelligence is contributing effectively in improving the organisation processes that is evident
with the help of an example of Bank of America. The company has emphasised on AI with the
motive to bring improvement in customer service. In addition to this, the use of artificial
intelligence creates an impact on society in terms of employment.

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References
Aguis, C, 2018, Four ways artificial intelligence can impact the workplace and society, Viewed
on 24th March 2018, <https://medium.com/datadriveninvestor/four-ways-artificial-intelligence-
can-impact-the-workplace-and-society-6a5177e58aa8>
Cath, C, Wachter, S, Mittelstadt, B, Taddeo, M, & Floridi, L, 2018, ‘Artificial intelligence and
the ‘good society’: the US, EU, and UK approach’. Science and engineering ethics, vol. 24, no.
2, pp.505-528.
Forbes Technology Council 2018, 14 Ways AI Will Benefit Or Harm Society, Forbes, Viewed on
24th March 2018, <https://www.forbes.com/sites/forbestechcouncil/2018/03/01/14-ways-ai-will-
benefit-or-harm-society/#e3869544ef09>.
Russell, SJ & Norvig, P, 2016, Artificial intelligence: a modern approach. Pearson Education
Limited, Malaysia.
Sennaar, K, 2019, AI in Banking – An Analysis of America’s 7 Top Banks, Viewed on 24th March
2018, <https://emerj.com/ai-sector-overviews/ai-in-banking-analysis/>
Sloane, T, 2018, The 18 Top Use Cases of Artificial Intelligence in Banks, Viewed on 24th March
2018, <https://www.paymentsjournal.com/the-18-top-use-cases-of-artificial-intelligence-in-
banks/>
Steels, L, & Brooks, R, 2018, The artificial life route to artificial intelligence: Building
embodied, situated ag1ents. Routledge, New York.