Dubai, United Arab Emirates - The opening day of Fintech Surge 2023 at Dubai Harbour brought together industry stakeholders to discuss generative artificial intelligence (AI) in the banking sector.
Attendees included banks, regulators, fintech startups, and investors.
Technology Development
Ahmed Alzarouni, VP and Head of IT at the Investment Corporation of Dubai, explained that current versions of generative AI can analyze human tone, text, and emotions.
He advised against incorporating sensitive data into these systems, noting that those who do not adopt AI risk becoming obsolete.
Operational Efficiency
Anand Krishnan of Emirates Investment Bank PJSC pointed out that AI enables the rapid formulation of personalized investment strategies.
As more data is acquired, the granularity of these adjustments is expected to increase.
Adoption Metrics
N.S. Nanda Kishore, CEO of Novac Technology Solutions, shared statistics that 70% of businesses are likely to adopt AI technologies by 2030.
SME Elevate predicts that 95% of all customer interactions will be facilitated by AI by 2025.
Environmental Costs
Alex De Vries, from the Financial Economic Crime Unit at the Dutch Central Bank, pointed to the high energy consumption associated with AI technologies.
This raises concerns about their sustainability and environmental impact.
Data security and ethics
De Vries also raised challenges related to data security and AI-generated disinformation. Compliance with GDPR was cited as an imperative to maintain data integrity.
Ethical management of algorithmic decisions also emerged as a critical concern.
Regulatory Hurdles
Discussions revealed that compliance with data protection regulations and mitigation of algorithmic bias are critical factors in the responsible use of AI.
Investment Landscape
The advancement of generative AI presents a dual landscape of opportunities and challenges for the banking industry. Investors and strategists must consider operational efficiencies and ethical and environmental impacts.
Data shows promising adoption rates and capabilities, juxtaposed with concerns about sustainability, data integrity, and ethical behavior.
