Why the back office comes first in AI deployments and failures that keep reappearing - Tearsheet

"67% of banks and credit unions are now implementing AI in some form, and 83% of financial institutions are increasing their AI budgets in lending and operations, according to research."

"Only 16% of institutions have developed a coherent strategy to go with it, suggesting that most AI investment is happening tactically rather than by design."

"Most of the burgeoning AI deployment is currently in the back office, but CTO of Q2 Holdings, Adam Blue, wonders whether this is because there is actually an advantage in choosing the back over the front."

"He said, 'I don't think we know yet if this is because enabling and amplifying employee effort is higher value than direct deployment to the customer or member.'"

A significant 67% of banks and credit unions are now utilizing AI, with 83% increasing their AI budgets for lending and operations. However, only 16% have a coherent strategy in place, indicating that most AI investments are tactical rather than strategic. The majority of AI deployment is occurring in back-office operations. Concerns about customer-facing AI implementations may stem from risks associated with rapid changes and security issues, as noted by Adam Blue, CTO of Q2 Holdings.

Read at Tearsheet