By Audrey Crummy
The opportunities are plentiful. We have strong relationships and a strong track record of helping companies enhance their capability across all areas, including their digital offering to customers.
But past success is no -guarantee of future gains. The emergence -of gen AI is potentially revolutionary for the sector – and as firms seek to build out their AI capability, it’s important that Ireland positions itself as the location of choice that can help with that.
A collaborative approach between industry, Government and regulators is critical in this regard.
Different perspectives abound regarding the potential impact of AI around employment, ethics, and more. This collaborative approach will help to recognise and address these in an appropriate way, and will also help Ireland approach the FDI opportunity in a coherent and structured way.
If the system is fragmented and lacks coordination, we’re not going to appear so attractive to international firms.
Firms should upskill and reskill their existing staff
While the industry is still at the early stages with generative AI, the technology has enormous potential to help firms deliver better products and services to customers, become more productive in the way they work, and accelerate innovation and new product development. This has been made clear by research that we at Financial Services Ireland have recently undertaken, in partnership with Accenture.
Some of the use cases identified in the report include Revolut, which has used AI to power its focus on innovation. It has integrated AI across its product development suite, from real-time fraud detection to intelligent customer support.
And Morgan Stanley is using generative AI to transcribe and categorise client meetings, and streamline access to the firm’s own proprietary research. This helps its advisers to deliver more timely and informed advice to clients.
Elsewhere, Mitsui Sumitomo Insurance has found AI useful for explaining complex concepts to customers in a speedy and accurate manner, drawing on the company’s knowledge base.
These are just some of the examples, though new and compelling use cases will continue to emerge.
As this happens, it’s important that people remain at the centre of firms’ thinking.
Financial services are ultimately about people – about providing customers and clients with services that meet their needs and exceed their expectations. It’s about fuelling economic activity and growth across society.
And people will be critical if the substantial benefits that come from generative AI are to be realised. Competition for talent with AI skills will be intense. Indeed, it is clear from our research that demand for these skills will substantially outpace supply.
In this context, upskilling/reskilling of staff will be essential, and the easiest place for firms to find skills is amongst their existing employees. We encourage firms to start thinking now about how they will ensure they have the right skills in place to realise the advantages of AI. The International Financial Services Skillnet is a great place to start, where courses have already been developed in consultation with industry leaders.
Firms should also consider their strategies for tackling the other key obstacles, as identified in our research with Accenture. These include ensuring data and technology capabilities are optimised, so your firm has the IT capacity to use AI properly.
In addition, it’s vital that firms have proper procedures in place to ensure they use AI in a way that is compliant, builds trust, and mitigates risks.
A proper understanding of what the technology can and cannot do, the errors and biases that can occur, and the need for human oversight, is essential.
Staff are bound to have concerns about what AI will mean for them and their role. Open and transparent communication with them will be a vital part of the process for harnessing AI.
From speaking to our member firms, it’s clear that when employees have the opportunity to interact with and use AI, the benefits it can bring to their working lives become much clearer.
Ultimately, our view is that AI is a tool to complement and augment employees’ efforts.
As tasks such as manual data entry and processing are likely to be automated, jobs will change. Firms should upskill and reskill their existing staff, harnessing their experience and insights to work on other activities that add value for customers and clients.
Government and industry bodies like Financial Services Ireland should support firms in doing this. Why? Because this approach will build further on the expertise of Ireland’s workforce, its capacity to deliver for firms who locate here – and also on the country’s attractiveness for FDI investors.
Generative AI is evolving fast. For Ireland, as it seeks to navigate this period of change and seize the opportunities, the time for collaboration and action is now.
​Audrey Crummy is deputy director at Financial Services Ireland