Some days ago I hold a speech for one of the main banks in Norway. The subject of the speech was the impact of technology and AI in their customers operations and how banks should face them and become an even more relevant partner for them.

These are the main points of the speech:

1) Europe in Crisis
The European industry is facing a deep crisis, with several sectors struggling to adapt to the rapidly changing technological landscape. In Norway, the situation is similar; the country has been searching for a sustainable path forward for its industry, but has yet to find a clear direction. Traditional models and strategies are being challenged, making it crucial for industries to embrace innovative solutions. In this context, technology and artificial intelligence (AI) are essential tools that can help revitalize industries, including banking and finance.

2) Examples of Artificial Intelligence Driving Innovation to Overcome the Crisis
Artificial Intelligence (AI) and machine learning are powerful technologies capable of transforming entire sectors. They have the potential to create new industries by automating complex processes, improving decision-making, and offering personalized services.

Agriculture, a key sector in Norway, faces complex challenges due to new regulations and even more demands on reduction of pesticides and fertilizers, and higher energy costs. Technology and specially AI can be part of the solution. Advanced analytics and AI-driven tools can optimize farming practices, reduce use of fertilizers and pesticides while improving yield predictions, and enhance supply chain management.

Retail is yet another industry facing big challenges due to competition from Direct To Consumer business models and cheap products from China. Innovation is therefore key in order to remain competitive. Examples of Norwegian companies already utilizing AI for innovation include Sofacompany, which uses augmented reality (AR) to enhance customer experiences, and Gullfunn, which employs recommendation bots to guide customers effectively through their purchasing journey.

AI is therefore not merely a tool for efficiency; on the contrary it is a catalyst for innovation, enabling industries to adapt to new market realities and consumer expectations.

3) Issues with AI Regulation
One of the current pressures on industries, including banking, comes from the regulatory environment. Europe is in the midst of a wave of regulations, driven by initiatives such as the EU’s Green Deal. This regulatory tsunami demands a shift in how businesses operate, pushing them toward greater sustainability and transparency. The EU’s AI Act, for instance, emphasizes risk-based regulation, particularly for applications like social scoring and facial recognition. This sounds good, but implies introducing demanding and expensive internal rutines and control mechanisms. Banks (and most other industries) must find a balance between innovation and compliance, using AI to its full potential to automatize these rutines, while adhering to already existing ethical standards and regulations. On the other side, by leveraging technology and AI, businesses can not only comply with regulations more effectively, but also discover new business models that align with a greener and more sustainable future.

4) The Bank of the Future
The bank of the future will be characterized by smarter and more responsive financial services driven by AI. For instance, NLP (natural language processing) will become the new software robots (RPA), providing faster administration and improved customer interaction. The challenge is that large language models (LLMs) like ChatGPT and Gemini, if used as hacking agents, can also create their own APIs, which can introduce new security challenges. Without AI as an agent for security will these challenges only become worse.

Additionally, banking systems will need to navigate an increasingly complex landscape of illegal AI applications designed specifically to swindle customers and bank employees. From deep-fake to advanced phishing, both sides are subject to an increasing level of uncertainty. From image and video analysis to natural language processing, the real strength of AI in the banking sector lies thus in its ability to learn from aggregated data from customers, and adapt quickly, enabling more secure services and the possibility of consultancy services based on benchmarking and continuous service improvement. The goal is providing customers with a more seamless, secure, high-value and tailored experience.

5) Resources You Can Use Starting Tomorrow at 9:00 AM
While the road ahead may be challenging, there are clear resources and actions you can take immediately:

  1. Use AI-Based Search to find inspiration and know your audience: Explore AI tools to better understand customer needs and identify market trends. You can start by checking out aitoolsdirectory.com for various tools on that.
  2. Automate leads and tailor messages to customers: Use AI to automate lead generation and tailor communications to each customer. This will help you reach customers more effectively and personally.
  3. Seek Help!: There are many experts and resources available to help you navigate the complexities of AI implementation. Whether through consultants, clusters, AI sandboxes, or regulatory authorities, there are many ways to get support on the path toward an AI-driven future in banking and finance. In Norway, one can get in touch with organizations like SINTEF, Digital Norway, Smart Innovation Norway, Nemonoor or Nora.