BOSTON, July 2, 2019 /PRNewswire/ -- Banking communications and press releases show conversational interfaces accounting for 38.87% of the AI use-cases at banks. In truth, most chatbots are pilot projects with little to no evidence of ROI; they're touted in the press to make banks appear more modern and convenient to customers. Emerj's AI in Banking Vendor Scorecard and Capability Map found conversational interface vendors score lowest in terms of funding and the AI talent they employ (2.4 out of 4.0).
The average customer service vendor in banking raises $16 million, far less than the average vendor in financing and loans ($49 million), fraud and cybersecurity ($48 million), and compliance ($44 million).
Companies raise more money when their products have traction, and conversational interface vendors make up only 5.5% of the total funding for AI vendors. Risk-related banking functions such as fraud are easier use-cases for AI than conversational interfaces that require advanced natural language processing algorithms. Machine learning has been used to great success in fraud detection for years. Banks might want to show off their chatbots, but that's not where they're investing money and they're not what are delivering the highest ROI for banks.
About the Emerj AI in Banking Vendor Landscape 2019 Report
The Emerj AI in Banking Vendor Landscape 2019 Report examines over 70 AI vendors in banking and over 50 internal AI use-cases within major global banks. Combined with dozens of industry interviews, this data is used to analyze the credibility, evidence of ROI, and accessibility of AI vendors and their products.
This data is matched on top of the Emerj ontology of banking functions and the Emerj ontology of AI capabilities to clearly map investments in different application categories, such as customer service, compliance, conversational interfaces, and recommendation engines. This allows banking leaders to invest in the technologies with the highest ROI and to assess their strategy against their competitors.
Research advisors for the report include the former Head of AI at HSBC, the COO Markets and Securities Services North America at Citi, and the Senior Director of Data Products at Visa.
Contact: Emerj Artificial Intelligence Research