Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More
Although financial services is a highly regulated sector, there are numerous potential applications for generative AI within it. During a panel at VB Transform, Shri Santhanam, the executive vice president and general manager of Software, Platforms, and AI at Experian North America, noted that people often perceive the industry as slow to adopt new technology. However, financial services are currently experiencing a major digital transformation.
Generative AI is significantly impacting many industries, including financial services. Santhanam mentioned that AI can enhance areas such as writing management and productivity, with the most significant transformation being improved financial inclusion. Santhanam, along with Christian Mitchell, the Chief Digital and Information Officer at Northwestern Mutual, discussed current generative AI applications in the financial sector and how highly regulated industries handle potential pitfalls.
Mitchell highlighted that Northwestern Mutual uses generative AI to enhance client choice and lifecycle analysis. AI assists clients in navigating the financial and insurance options available to them and provides deeper insights into retirement planning. Both Mitchell and Santhanam warned against haphazardly applying AI, particularly when it could expose sensitive information. However, they also noted the risk of being overly cautious.
Santhanam emphasized the importance of moving beyond proof of concept (POC) stages, investing in production-scale projects, and carefully selecting sponsors for market readiness. He explained that AI projects must align strategically, be customized beyond off-the-shelf applications, and meet regulatory standards. One of Experian’s early AI experiments aimed to better understand over 60 years of data, presenting a significant challenge for engineers.
AI in finance promises benefits such as increased efficiency, cost savings, improved risk management, personalized services, and better decision-making. However, many current applications focus on data analysis or customer service, areas where financial services companies have already integrated high levels of technology. VentureBeat’s analysis revealed that some areas of finance remain complex and often still require human intervention.