Defining the future of banking and insurance in the AI era
Artificial Intelligence, two words that encapsulate a promising future but also demand reflection on the timing, methods, and uses of this technology. This hot topic was the focus of discussions in Milan at the Armundia TalkInn 2024, an annual event organized by the Armundia Group. It serves as a valuable observatory on the future challenges, shedding light on the path forward for the banking and insurance sectors through the experiences and visions of its key players.
This year’s edition, titled “Banking & Insurance: the Next Level. Challenges for the sector, the new paradigm in the AI era” brought together operators, institutions and research leaders.
Industry leaders contributed their insights on digital transformation through the lens of Artificial Intelligence: new business strategies, synchronization of business processes, evolving relationships, and the evolution of professions. AI is currently revolutionizing banking and insurance, presenting an unmissable opportunity for companies that can transform their organizational models while keeping the human element central in decision-making processes and client relationships.
Here are three lessons learned from TalkInn 2024.
1. If governed competently with uniform international regulation, Artificial Intelligence provides a significant competitive edge and should be the focus of investment plans. This technological transformation is a powerful tool; all businesses are data-driven, and AI is a vital accelerator for using and unlocking the potential of both structured and unstructured data. Humans will always be central to decision-making but must update and acquire new skills: investing in professional training and partnering with cutting-edge tech players is of added value.
2. What is the global scenario? A key message from Federico Rampini, a journalist and writer connecting from New York, was “America Innovates, China replicates, and Europe regulates.” Europe and Italy need a mindset shift to bridge the gap with the United States and China. Instead of protecting against AI by crafting complex regulations, it is crucial to experiment with and master it to quickly adopt innovations that support business productivity. It’s necessary to respond to the technological revolution by learning from the past to avoid repeating the same mistakes.
3. Social transformations in the AI era also require ethics. Technology must be designed and used optimally to fully realize its benefits and meet the needs of a constantly evolving society. Greater regulatory coordination to explore use cases, shared strategies, and investments in research, along with a pragmatic approach and training to enhance understanding and awareness of AI, are essential. Data quality and clarity are the starting points for transformative AI in the financial and insurance sectors, aiming to become less generalist and more specialized.
Armundia TalkInn 2024 reiterated the crucial role of Artificial Intelligence as a driver of innovation in the banking and insurance sectors. Discussions emphasized the importance of a balanced approach that integrates technological advancement with ethics and responsibility. Investing in AI, therefore, means not only enhancing efficiency but also boosting competitiveness and promoting a culture of responsible innovation, paving the way for a future where technology and humanity advance together towards tangible improvements in service and quality of life.
