Ensuring Balance: AI Implementation Impacts Employees and Customers for Financial Institutions
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The integration of artificial intelligence (AI) within financial institutions is no longer the future; it’s the present reality rapidly transforming the industry. In an extremely competitive landscape, AI offers banks new opportunities for efficiency and innovation. Across the global banking sector, AI could add between $200 billion and $340 billion in value annually, or 2.8 to 4.7 percent of total industry revenues, largely through increased productivity.
Over 50 percent of financial institutions are using AI to optimize investment decisions. As AI adoption continues to grow, institutions must strategically navigate implementation. To achieve this, it’s imperative that banks have a plan in place to address the impact on both their employee and customer experiences. Neglecting either will lead to imbalances that will diminish AI’s capabilities.
Prioritizing the workforce experience
Employee satisfaction is critical for any institution’s success, especially in the midst of organizational transformation. Without proper change management techniques in place, AI integration can potentially disrupt employees’ roles and workflow. Therefore, prioritizing workforce experience involves several strategic initiatives to ensure employees are not only prepared for these changes, but also feel valued and supported during AI implementation.
Since AI automates routine tasks, it’s crucial for financial institutions to invest in reskilling programs. A reskilling program introduced in tandem with AI allows employees to learn new skills or improve existing ones that complement AI’s efficiencies. For example, employees can be trained in data analysis, AI oversight and when to utilize AI in their day-to-day role. When an institution provides this training, the workforce will learn to work in tandem with new technology, maintaining a smooth transition and reinforcing job security.
Another vital element in prioritizing the workforce experience is transparent communication from the institution. The institution should be upfront and clear about AI’s role, the reason for implementation and how it will impact employees’ daily tasks. It is crucial to reinforce that AI will not diminish their importance. In fact, the technology will add value by simplifying tasks so they can focus on more complex work. Once employees understand the benefits and objectives of AI implementation, they’re much more likely to embrace the new technology. This transparency also involves being honest about the potential challenges and how the workforce can address them proactively, fostering trust and collaboration between leadership and staff.
Additionally, involving employees in the AI implementation process can significantly enhance their experience and acceptance of the new technology. This can be achieved by creating cross-functional teams that include employees from various departments and levels of the organization. This allows the employees who participate in the implementation process to feel a sense of ownership and contribution to the success of AI.
Prioritizing the customer experience
The financial services landscape is increasingly competitive, meaning institutions must emphasize the customer experience more than ever before. With numerous banking options available, customers are going to choose and be loyal to institutions that provide personalized and efficient services. AI offers significant opportunities to enhance customer interactions, but it must be implemented successfully for customers to actually discern its benefits.
One of the most noticeable advantages of AI to the customer is its ability to personalize customer interactions. AI can analyze customer data to provide insights into the individual’s preferences, spending habits and financial goals. AI can also be used to offer customers personalized product recommendations, tailored financial advice and customized marketing messages. For example, AI-driven chatbots can use customer data to provide relevant information and services, making interactions more meaningful and efficient. Personalized interactions not only enhance customer satisfaction but also create a more engaging and germane experience.
AI can also enable financial institutions to enhance customer service by utilizing predictive analytics. This allows AI to identify potential issues before they escalate, allowing institutions to address them proactively. For instance, AI can detect unusual account activity and alert customers to potential fraud, providing peace of mind and building trust. Additionally, AI can anticipate customer needs based on their past behavior and offer solutions before they even realize they need them. This proactive, problem-solving approach heightens the customer experience by making the customer feel the institution is attentive to their needs.
Achieving balance: Integrating workforce and customer priorities
Prioritizing both the employee and customer experience is crucial for AI implementation since both are equally important. Thankfully, employee and customer experiences are intertwined. When employees are engaged, well-trained and satisfied, they’re more likely to deliver great customer service, which in turn leads to higher customer satisfaction and loyalty. Additionally, positive customer interactions can boost employee morale and overall job satisfaction. Strategies for financial institutions for AI implementation that help achieve this balance include inclusive AI training programs, feedback mechanisms and balanced automation.
Financial institutions should consider implementing AI training programs that cater to both employees and customers. For employees, this training should focus on how AI can increase their productivity and provide opportunities for career growth. For customers, educational tools can help them understand and effectively use AI-powered tools and services. Training for both groups should focus on building trust, as customers and employees alike express hesitancy around AI. Addressing these hesitations upfront can help financial institutions create transparency around the technology, ultimately leading to acceptance and smoother transitions to new tools as they’re introduced.
Additionally, feedback mechanisms that involve both employees and customers following the AI integration phase such as regular surveys, focus groups and listening sessions can provide insight into the experiences and concerns of both groups. The institution can then use this feedback to make strategic adjustments to AI technology, ensuring the needs and preferences of both employees and customers are addressed.
Balancing the use of automation and human touch in both employee and customer interactions is how acceptance of the new technology can be achieved. AI should be used to handle routine tasks efficiently, but the complex and sensitive issues should still be managed by humans.
Use case: Virtual assistants
A practical example of how this balance can be achieved between workforce and customer priorities is the use of AI-powered virtual assistants. For employees, virtual assistants can streamline their workflow by automating tedious, time-consuming tasks. For customers, virtual assistants offer accurate and personalized responses to their inquiries and are available to them 24/7, ensuring a seamless and efficient service experience.
If a customer contacts their bank for assistance with a loan application, the virtual assistant can first handle the inquiry by providing personalized information on loan options, interest rates and required documentation. If the customer needs further assistance, the virtual assistant can then transfer the interaction to a human agent who can then provide more detailed information. This collaboration between AI and human agents ensures that the customer receives comprehensive and personalized support while also increasing the efficiency of the institution’s customer service team.
The successful integration of AI for financial institutions relies heavily on the institution prioritizing both workforce adoption and customer experience. AI will continue to transform the financial services industry and institutions must set themselves apart by ensuring their implementation strategies are inclusive and balanced. By investing in reskilling initiatives, transparent communication, employee involvement strategies, personalized customer interactions, predictive analysis and tools to support both employees and customers, an institution can experience the full potential of AI. This will not only drive innovation but ensure long-term success in a competitive industry and an increasingly AI-driven world.
Susanne Turnbo joined Sendero in 2007 as one of the firm’s first employees. Starting as a manager, her impressive work enabled her to rise to managing director. Her deep management consulting and IT operations experience plays an instrumental role in creating positive results for her clients.
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