Not All AI is Created Equal: Key Insights from Our Webinar
Artificial intelligence (AI) is transforming the financial industry, but not all AI solutions are created equal. On December 11, 2024, Directlink hosted the second webinar in our Perceptions & Misconceptions of AI in Banking series. Ben Nichols, Co-Founder and Head of Product, discussed the complexities of AI and what financial institutions need to know when evaluating these technologies.
Here’s a closer look at the insights shared during the session.
Breaking Through the AI Buzz
AI is everywhere—promised in marketing campaigns, showcased in technology pitches, and featured in products across industries. Yet, as Ben highlighted, AI often feels like a black box filled with buzzwords. To cut through the noise, financial institutions must ask the right questions to understand what’s behind the technology.
For example:
- How does this AI solution make decisions?
- What data sources inform its reasoning?
- How is the AI maintained and updated?
The answers to these questions can reveal whether an AI system is truly valuable or simply hype dressed as innovation.
Not All AI is the Same
One of the session’s key themes was that AI is not a monolithic technology. Ben broke AI into distinct categories:
- Traditional AI: Systems using long-standing methods like clustering and regression.
- Neural Networks and Deep Learning: Advanced approaches mimicking the human brain’s processes.
- Generative AI: Cutting-edge tools like ChatGPT or image generation platforms.
Each type of AI has unique strengths and weaknesses, and understanding these is critical when evaluating vendors.
Focus on the Problems, Not Just the Tools
A major takeaway from the webinar was that AI is a means to an end, not the end itself. Institutions should define the problems they want to solve—such as reducing call center workloads, improving digital onboarding, or enabling more personalized member experiences—before diving into AI adoption.
As Ben emphasized, “Don’t adopt AI just because it’s trendy. Focus on the problems you’re solving.”
Directlink’s Approach to AI
Using Directlink’s Virtual Banker as a case study, Ben provided a behind-the-scenes look at how AI can be applied effectively in banking. The Virtual Banker uses natural language understanding to deflect routine calls, empowering customers with fast, accurate self-service while reducing operational strain on staff.
What sets Directlink apart is transparency and control:
- Financial institutions manage the AI through a no-code content management system.
- Operators can audit and refine responses to ensure accuracy and compliance.
- Data security is prioritized, with safeguards to protect sensitive information.
Five Questions to Ask Your Next AI Vendor
To close the session, Ben shared five essential questions to evaluate AI vendors:
- How does the AI make decisions?
- How is accuracy measured and improved?
- What processes ensure proper AI model maintenance?
- How does the AI handle bias and fairness?
- What controls are in place to manage errors and failures?
These questions empower institutions to make informed decisions, ensuring that AI solutions align with their goals and values.
Looking Ahead
As AI continues to evolve, so does the need for education and dialogue. Directlink is committed to helping financial institutions navigate the complexities of AI with clarity and confidence. Stay tuned for the next webinar, coming in spring 2025.
Ready to take the next step in your AI journey? Connect with us to learn more about how Directlink can help you deliver smarter, more efficient customer experiences.
