“The power of LLMs coupled with automation tools, open APIs and adaptable business processes will transform the way companies and industries operate, both in speed, quality and costs,” Srikanth Gopalakrishnan, Managing Director, CIO (HR), Deutsche Bank Group told AIM in an exclusive interview.
Deutsche Bank has followed a strategic approach in embracing Generative AI and advanced technologies as catalysts for transformation within the financial sector, which has initially been shying away from jumping into the bandwagon. The banking giant is not only riding the generative AI wave but also pioneering a comprehensive evolution of their business practices for the future.
Deutsche Bank’s Generative AI Voyage
The bank’s innovation team within their global Technology, Data and Innovation (TDI) division is exploring and testing AI and generative AI uses cases in collaboration with our business and infrastructure divisions.
Recognising the immense potential that AI has, DB has a range of opportunities throughout its operations including gaining precise insights into client behavior and preferences, enhancing operational efficiency, and leveraging AI for investment decisions. Currently, the bank is globally investigating three key areas: developing software code that aids developers in boosting productivity, implementing AI chatbots to assist employees and clients with queries using unstructured data and voice, and accelerating risk calculations.
Gopalakrishnan anticipates that in the future, AI and ML will integrate seamlessly into nearly every facet of their business, spanning internal operations encompassing HR, finance, legal, and IT, as well as customer-facing interactions and capabilities.
DB has been employing AI solutions alongside classical AI models, such as Regression or Random Forest, for a long time now. These applications include the automation of manual procedural stages, such as data matching and validation, along with the handling of substantial volumes of unstructured data. Notably, these mechanisms expedite the previously labor-intensive procedures of assessing and managing loan documents within the lending sector. Furthermore, AI models are harnessed for monitoring financial transactions to detect potential instances of financial misconduct, while also being progressively integrated into customer advisory services.
Partnership is the Key
“Partnerships are essential in times of transformation. And, we believe in the opportunities that arise from partnerships – with emerging fintechs and start-ups, and also with the large technology companies,” said Gopalakrishnan.
The company is engaged with the current development around AI chatbots, generative AI tools and LLMs. It is one of the handful of ‘trusted testers’ that has been given early access to test Google’s capabilities here,”
To make this possible, DB has collaborated with various tech giants that offer generative AI services. Their multi-year partnership with NVIDIA is a move to propel their adoption of AI solutions.
Their cloud transformation and partnership with Google Cloud since December 2020 have helped them establish advanced data analytics and AI and ML capabilities across the bank. For instance, the collaboration allows them to experiment with and adopt the latest technologies from Google Cloud, promoting innovation throughout the bank. The recent introduction of Google Cloud’s generative AI offerings is seen as a valuable opportunity to use cutting-edge technology securely and responsibly. Google has a suite of such offerings including generative AI powered Vertex AI, app builder, Duet AI for Google Workspace and Google Cloud and more. They are looking forward to directly accessing AI solutions in the cloud to easily incorporate them into new applications, providing a significant advantage for their future plans.
“Cloud is a key part of our technology strategy for several reasons, and this includes the agility that it provides to our business,” he added. It enables them flexible scalability, eliminates infrastructure bottlenecks, and accelerates innovation and market entry. Embracing the cloud necessitates rethinking controls and policy-as-code, empowering development teams and enhancing business agility, thereby expediting digital transformation. The strong strategic collaboration between NVIDIA and Google Cloud has proven advantageous and is actively contributing to their progress.
Cracking the Code of Responsible AI
At the core of DB’s AI and analytics play lies responsible AI ensuring not only adherence to data privacy regulations, but also the delivery of transparent, consistent, and dependable outcomes. Within the financial industry, a cautious and secure approach to harnessing AI’s potential is imperative. They emphasise the need for responsible utilisation, ensuring fairness, the absence of hidden biases, and factual accuracy in banking algorithms.
“As such we do not deploy any ‘black box’ algorithms in Machine learning,” he added. The incorporation of a ‘human in the loop’ approach is a key element in their toolkit for minimising errors like ‘hallucination’ and ‘omissions’. It is emphasized that no exemptions are granted to emerging technologies; AI must align with core requisites encompassing data protection, anti-financial crime measures, and cyber security.
Read more: Responsible AI Takes Center Stage at Google I/O Connect
The post How Deutsche Bank is Riding the Generative AI Wave appeared first on Analytics India Magazine.
