as to enhance customer engagement and loyalty through chatbots and other interactive tools .
Another key opportunity for impact is in data management . Banks and insurers generate and collect massive amounts of data – whether that ’ s transactions , customer behaviour , or market trends . However , many providers still struggle to use this data effectively and efficiently . AI models can help unlock the value of data through rapid analysis and pattern identification and large language models can facilitate understanding through natural language prompts – ultimately providing insights that can inform better decision making and strategy development .
Finally , the financial services sector faces increasing threats from cyberattacks as well as stricter regulations requirements from various authorities . A recent report by Microsoft , titled Mission Critical , revealed that financial services organisations using AI in cyber defence are twice as resilient to attack and suffer 20 % lower costs when compromised . However , only 38 % of financial services businesses are using AI to strengthen their cyber defences ,
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