The financial services industry is no stranger to innovation. Over the past decade, there has been a rapid digital transformation, from the rise of fintech to the adoption of blockchain technologies. But as in all industries, generative AI (Gen AI) promises to not only streamline processes and reduce costs but unlock new opportunities for growth and customer engagement in financial services – making it a competitive necessity.
But as organisations develop in their innovation maturity and identify their AI use cases, effectively deploying Gen AI demands a multifaceted, integrated approach that encompasses everything from data, computer power and infrastructure, to creating production-ready Gen AI systems.
This was the heart of the discussion at the recent AI in Financial Services (AIFS) conference in London, which Dell Technologies sponsored alongside our partners NVIDIA and World Wide Technology (WWT). During the event, I moderated a breakfast briefing with a small group of industry leaders, where we discussed why the future of financial services lies in adopting a holistic, AI-first approach.
Building the Right Gen AI Ecosystem
Organisations rely on vast amounts of data to make decisions. Gen AI takes the importance of data further by enabling institutions to generate real-time insights, create new products, and deliver hyper-personalised customer experiences. Moreover, Gen AI in financial services has the potential to significantly improve operational efficiency, streamlining many back-office processes that are time-consuming and resource-intensive – from automating fraud detection and risk assessment to optimising trading strategies.
However, with these opportunities come challenges and financial institutions must ensure that they have the right infrastructure, governance, and training in place to fully capitalise on Gen AI’s potential.
To achieve this, financial institutions must adopt a comprehensive, ‘AI-first’ approach to their Gen AI investments. This means looking beyond just the technology itself and considering how Gen AI fits within their broader organisational strategy. That means focusing on three critical areas.
- The Business Side of AI: It’s essential for organisations to recognise the transformative potential of Gen AI and identify use cases that align with business goals. Leadership buy-in is crucial in ensuring the success of Gen AI initiatives. Financial institutions should take a systematic approach, starting with small, tactical deployments to experiment and learn, while also developing a long-term strategy to scale Gen AI across the organisation.
- The Technical Side of AI: Implementing Gen AI requires more than just adopting the latest tools. This new industrial revolution will take data in and output intelligence via AI Factories – full stack accelerated computing platforms that enable every line of business to reliably build and deploy AI-enabled applications at scale. Upgrading infrastructure, preparing data, and implementing robust training programmes are all essential to ensuring the successful deployment of Gen AI.
- The People Side of AI: Gen AI adoption is not just about technology – it’s also about people. Effective communication and training are key to building support for Gen AI initiatives. Employees, customers, and partners need to understand how Gen AI will benefit them and how it enables new ways of working. Financial institutions must also address the skills gap by investing in AI education and bringing in expert support where needed.
The Dell AI Factory with NVIDIA helps organisations to bring AI to their data, giving them the building blocks for seamless integration of AI models and frameworks into their operations, enabling them to turn their ideas into practical applications. By partnering with industry leaders like NVIDIA and WWT, Dell Technologies provides financial institutions with the infrastructure, expertise, and support needed to accelerate Gen AI implementation and drive real business value.
Addressing the Cost and Complexity of GenAI
While the benefits of Gen AI are clear, the upfront cost of AI infrastructure, including GPUs, servers, and storage, is typically one of the biggest barriers to entry for organisations. However, through pay-per-use subscription-based models, like Dell Technologies APEX, organisations are able to gain flexibility over the scale and cost of their requirements while accessing the latest AI infrastructure.
To maximise their investment, financial institutions must also carefully prioritise their use cases to ensure they are focusing on the most valuable opportunities. As highlighted by Dell’s own AI use case prioritisation process, it’s important to identify clusters of use cases that share similar data sets or models. This approach allows organisations to maximise the value of their AI investments by focusing on a manageable number of high-impact initiatives.
Ensuring Security and Compliance
One of the most pressing areas for financial institutions is to create a central governance strategy that mitigates security and compliance risks associated with Gen AI.
Financial institutions must establish clear guidelines for the use of Gen AI, including which data can be used and how it should be protected. Shadow AI, or the unsanctioned use of AI tools by employees, poses a particular risk. Institutions need to implement strong governance frameworks to ensure that all AI usage is regulated and compliant with industry standards.
Furthermore, by leveraging on-premises solutions, financial institutions can maintain greater control over their data, reducing the risk of breaches and ensuring compliance with regulations such as GDPR. Dell Technologies offers solutions that enable financial institutions to deploy Gen AI in a secure environment across all workloads across multicloud, on-premises and the edge – safeguarding sensitive data while maintaining the flexibility and scalability of AI.
The Future of Gen AI in Financial Services
As the pace of AI innovation accelerates, organisations can achieve a smooth pathway to success by bringing Gen AI to their data, wherever it resides. Ultimately that means:
- Optimising your environments by placing Gen AI applications and data within a multicloud environment designed to deliver more value.
- Securing your data by safeguarding confidential information without compromising performance, using private Gen AI implementations.
- Conserving your resources by right-sizing your GenAI for peak efficiency, and reducing costs with sustainable pay-per-use subscriptions.
- Bridging your skill gaps with a range of services, validated designs and as-a-service solutions.
By partnering with Dell Technologies, financial institutions can unlock the full potential of Gen AI. With the right tools, infrastructure, and expertise, organisations can not only enhance their operational efficiency and customer experiences but also gain a competitive edge in an increasingly AI-driven world.
Dell Technologies, alongside partners such as NVIDIA and WWT, are committed to helping financial services organisations navigate this exciting new frontier and achieve sustainable, long-term success. Find out more about our Professional Services for Generative AI here.
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