Machine learning influence grows in banking sector


According to the study, 92% of organizations are working with AI/ML models but 61% don’t have a data strategy in place to support it. “Thanks to an explosion of data, exponential increases in computing power and storage capacity, and better algorithms, artificial intelligence (AI) and machine learning (ML) capabilities are poised to revolutionize business processes,” the study’s authors wrote.

“There is a lot of long-term momentum in the AI market, said Nitish Mittal, vice president in the digital transformation practice at global research firm Everest Group. He noted AI/ML adoption is expected to accelerate through 2024.

Many organizations see minimal impact

Wayne Butterfield, director and leader of the European AI automation practice at business consultancy and research firm ISG, said a limited number of organizations are seeing significant business impact from their AI/ML investments so far. “If we break down AI into its various components, nearly every enterprise is using one of them,” he said. “But none of it is transformative. It’s very much happening around the edges. Very few organizations are AI-first. Most organizations are not set up to achieve that.”

Most organizations are in the early stages of their application of AI/ML models, according to the research. Results are more likely to accrue incrementally over the next few years — a gradual transformation that will ultimately become part of the fabric of leading companies, analysts found.

“It will be more like a slow birth than a sudden overnight shift,” Butterfield said. “This low-speed transformation will require significant determination and coordination. “Transformation using AI requires a collection of people, departments, technology types, and more all coming together under a single umbrella,” he added. “It is going to be difficult.”

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