Artificial intelligence (AI) is changing the way clients interact with their bankers, according to Sabine Keller-Busse, the head of UBS's domestic business (via Reuters).
Speaking at the Point Zero Forum in Zurich, Keller-Busse emphasized that the Swiss bank is witnessing a significant shift in client behavior, powered by AI technologies like Chat GPT.
A photograph shows a logo of Swiss giant bank UBS in front of a logo of Credit Suisse bank in Zurich on March 19, 2023. Photo by FABRICE COFFRINI/AFP via Getty Images
Swiss Bank UBS Believes AI Is a Game-changer in Client Interactions
"In our industry, this will happen as well because with Chat GPT there is more data available," Keller-Busse stated. She compared this change to how patients visit doctors with a pre-diagnosed idea of their ailments. Similarly, clients are now approaching bankers with ideas and strategies formulated through AI.
UBS has been proactive in integrating AI into its services and products. Last year, the bank launched a pilot program for instant credit aimed at small and mid-size companies, which often require quick access to liquidity.
This AI-powered service streamlines the credit process by bypassing traditional credit officers, significantly speeding up the approval process for these standard products. Keller-Busse highlighted, "It's just the beginning of what we will see."
AI: Largest Investment Opportunity in Human History
Last week, UBS's chief investment office released its mid-year outlook for 2024, noting the impact of AI on corporate profit expectations and market dynamics.
After a strong performance in the first half of the year, largely driven by AI advancements, UBS's CIO stressed the importance of maintaining a diversified investment portfolio.
The bank views AI as one of the largest investment opportunities in human history, advising investors to ensure their portfolios are "AI-enabled."
UBS is particularly optimistic about semiconductor companies, which are currently benefiting from high levels of AI investment. Additionally, the bank sees potential in vertically integrated oligopolies in both the US and China, which are well-positioned within the AI value chain.
However, UBS also cautions that over-investment fears could lead to a market correction in the second half of the year, suggesting that capital preservation strategies could help mitigate this risk.
The Risks of Integrating AI Into Banking
Elisabeth Austad Asser, in her doctoral dissertation at the University of Agder, raised concerns about the potential for AI to exacerbate social inequalities.
Asser's research, which focused on the Norwegian bank Sparebanken Sør, highlights how AI-driven decision-making can categorize individuals and limit their choices, potentially leading to discrimination.
Asser's recommendations for responsible AI implementation in banks include developing clear AI strategies, understanding relevant laws, prioritizing data quality, addressing biases, and involving diverse teams in algorithm development.
She advocates for a transparent and fair approach to AI, ensuring that algorithmic decisions align with the bank's values and include mechanisms for monitoring and auditing AI systems.
Consumer Acceptance of AI in Banking on the Rise
Meanwhile, a report by global digital transformation company GFT shows that US banking customers are increasingly accepting of AI in their banking experiences, provided there is transparency.
According to the Banking Disruption Index, 44% of American consumers are content with AI in personal banking. They favor AI applications in enhancing everyday banking tasks and bolstering cybersecurity measures.
The survey of 2,002 US consumers revealed that 32% of respondents are open to using AI-driven tools for financial planning and savings guidance, such as budgeting and investment strategies.
