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Conversational AI in Banking: Definition
Conversational AI is a type of artificial intelligence capable of simulating human interactions. In simple terms, it’s a type of AI that can talk with other humans as if it were a human agent. This technology is based on natural language processing (NLP) and machine learning (ML) and may take many forms.
For instance, a generative AI tool might be used as a conversational AI in banking. You might also opt for tailored AI Assistants or chatbots. Speech recognition and text-to-speech software are also considered conversational AI (as per Google’s definition), so this technology may provide a broad spectrum of uses and values.
The Value of Conversational AI for Banks
Conversational AI has many faces, a plethora of which can be used in banking. To understand its value, we need to look at its different types. Hence, we’ve divided our list of benefits based on the solution used.
AI Chatbots
Chatbots are the most common applications of conversational AI in customer service. We all know what they are, so instead of introducing them, let’s get down directly to the values they bring to the table.
- Improved productivity—with chatbots based on conversational AI, you will reduce the amount of queries solved by your teams, taking over a part of their responsibilities.
- Accessibility—AI chatbots enable you to provide customer support 24/7 without long queues. Surely, they won’t cover more complex or life-changing issues, but they might be ideal for quick support at any time and place.
Virtual Assistants
While chatbots are pretty straightforward, there is a different approach using similar technology—virtual assistants and AI prompters. Such tools are designed for customer service agents (and back office employees) to support their everyday tasks.
This type of conversational AI for banks acts as a partner whom your employees may ask about:
- current legal regulations,
- your internal regulations and documentation,
- a given customer’s estimated credit score,
- etc.
The idea here is to feed these assistants your internal knowledge, documents, and guidelines created for your employees. Thanks to this, your team members won’t have to scroll through hundreds of pages of said documents—all they’ll have to do is ask the AI and wait for the response.
What’s more, some AI Assistants, like the one offered with the LiveBank platform, automatically cite the documents from which they’ve extracted the information—your employees can verify it.
Speech Recognition and Text-to-speech
Speech-to-text and text-to-speech conversational AI also brings great value to banks. It may become a decisive advantage in your efforts to attract people with sight disabilities.
Thanks to this type of AI, you can automatically translate texts into speech, making your content and services much more accessible. You no longer need to worry about missing a certain part of the content, hiring voice actors (or using voiceover tools). What’s more, you increase the number of channels that people with sight disabilities can use—once relying mainly on phone calls, they can now utilize the chat to communicate with your bank.
General Benefits
Apart from the above solution-specific values, conversational AI offers some general perks for banks. What are they?
- Data collection and analytics—conversational AI engines usually can collect data for your bank, and then analyze it to generate insights out of the conversations between it and the customers.
- Lower operational costs—all the benefits, no matter the specific solution, lead to lowering your day-to-day expenses.
- Decreased chances of human error—AI also eliminates the potential for human error. In itself, it’s not perfect, but you don’t have to worry about tiny mistakes that could cause major consequences.
The Takeaway
Lowering your operating costs, improving customer satisfaction, boosting productivity or becoming more accessible—these are but a few of the values generated by implementing conversational AI in banking. Thus, we can highly recommend this technology. Which solution should you choose? Opt for LiveBank—our customer engagement platform for banks!
You may also read: Exploring the Role of Artificial Intelligence in Digital Banking
References:
- https://cloud.google.com/conversational-ai
