AI adoption in organisations is moving ‘too fast’: KPMG survey

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Concerns around use of AI was more prominent among smaller firms, Gen Zs and Millennials. Ethics, governance, and regulation of AI are major factors, the study notes

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Business leaders are experiencing a COVID-19 whiplash from the pace of artificial intelligence (AI) adoption, according to a report by audit firm KPMG. They see this acceleration to be moving “too fast”, but still are confident that AI can solve several challenges.

In its study titled Thriving in an AI World, the advisory firm notes that nearly half of business leaders in manufacturing, retail, and technology sectors believe AI is moving faster than it should. KPMG surveyed 950 business leaders across seven industries including technology, financial services, manufacturing and healthcare.

And within the industry group, leaders in healthcare and life sciences overwhelmingly said that AI helped them to monitor COVID-19 pandemic, develop vaccines and distribute them. The sentiment had resonated with executives in Financial Services, who noted that AI’s ability to detect fraud proved very effective this year.

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Concerns around use of AI was more prominent among smaller firms, Gen Zs and Millennials. Ethics, governance, and regulation of AI are major factors, the study notes.

“Moreover, many business leaders do not have a view into what their organisations are doing to control and govern AI and may fear risks are developing,” said Traci Gusher, principal of AI at KPMG.

In December, another global audit firm PwC noted in its report that AI use in India during the pandemic was greater than in countries like the U.S., Japan and the U.K.

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KMPG’s survey also notes that executives prefer a regulated path for AI as opposed to a ‘Wild Wild West’ model – – a lawless and unruly.

“Additionally, a more robust regulatory environment may help facilitate commerce,” said Rob Dwyer, principal at KPMG. “It can help remove unintended barriers that may be a result of other laws or regulations, or due to lack of maturity of legal and technical standards.”

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Cybersecurity critical for digital banking success: SBI official

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Digital banking is thriving on artificial intelligence and technical algorithm models which help to find out the customer’s ability to pay and also the intention to pay along with credit ratings of the customer.

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Cybersecurity is critical for the success of digital banking and banks should create the infrastructure to win customers’ trust for all such transactions, a senior SBI official said on Wednesday.

Digital banking or Figital is here to stay and is the future but it is equally important to safeguard the interests of all stakeholders, State Bank of India (SBI) Deputy Managing Director and Chief Digital Officer Ravindra Pandey said at a webinar.

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“It is important to win the customers’ trust in any system. It is the objective of banks to create and win the customers’ trust, such that all transactions are routed through banks as is presently done by multiple payment apps,” Pandey was quoted as saying in a release issued by industry body PHD Chamber of Commerce & Industry.

The official said that fintech has bought about changes in the customer mindset and it is an era of techfins rather than fintech.

Digital banking has helped in enhancing customer relationship, engagement and satisfaction and reduced operating cost, processing cycle time, among others, he added.

Also Read | India’s cyber defenses breached and reported; govt. yet to fix it

Digital banking is thriving on artificial intelligence and technical algorithm models which help to find out the customer’s ability to pay and also the intention to pay along with credit ratings of the customer.

According to the official, conventional operating models have given way to new channels. There are three areas in fintech that needs to be intertwined to make it a success — payment and remittance; process improvement – compliance and risk management; and customer engagement –, he noted.

Also Read | SEBI mulls cybersecurity fusion centre for securities market

Sanjay Aggarwal, President of PHD Chamber of Commerce & Industry, said the banking industry is moving towards a more collaborative and open environment while focusing on data protection and minimising systemic risks.

Representatives from fintech companies, NBFCs and other financial sector also participated in the webinar.

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