Over half of customers don’t get any benefit from AI

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While COVID-19 has catalysed financial services organizations to harness Artificial Intelligence (AI) to improve customer experience (CX), challenges in integration and customer perceptions are still undermining its potential.

That’s according to a report published today by the Capgemini Research Institute entitled, Smart Money: How to drive AI at scale to transform the financial services customer experience.

The deployment of AI to improve the overall CX has grown significantly in the financial services industry in the past three years. Just over half of customers (51%) have daily AI-enabled interactions (like talking to a chatbot) with banking and insurance firms. This becomes even more important as most customers (78%) expect to increase touchless interactions as the COVID-19 crisis prolongs.

Financial services firms have already perceived the positive impact on their bottom-line of implementing AI in customer-facing functions, including reduced cost of operations (13%) and increased revenue per customer (10%).

However, a clear disconnect is emerging as customer expectations are not being met. Almost half (49%) of consumers rate the value they derive from AI-enabled digital touchpoints as non-existent or less than expected. Furthermore, customers are increasingly looking for a more human experience when interacting with AI-powered chatbots, and 35% say that their current interactions lack the human touch.

  • A majority (78%) of consumers expect to use touchless interactions more, through voice assistants, facial recognition or apps – compared to just 61% pre-COVID-19.
  • Close to half (45%) of customers will increase their use of contactless payments during the pandemic.
  • COVID-19 is also prompting a major behaviour shift by older consumers as contactless payments adoption has grown by 37% in the 61–65-year age group, and a 33% increase with those over 66.

Concludes Anirban Bose, CEO of Capgemini’s Financial Services and Group Executive Board member.

“Financial services firms have much to gain from implementing AI in their customer interactions, but there are steps to be taken before the benefits are fully realized for businesses and consumers alike. 

“Organizations need to focus on educating their customers and staff on what AI can do for them. It will take both investment and consumer trust to make the most of this powerful technology. To deliver the right AI-powered experience centred around the consumer, banking and insurance firms must ensure they have senior leadership roles in charge of internal and external AI adoption and acceleration.”

 

Chris Price
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