Artificial Intelligence: A Boost for Embedded Financial Services

The financial services industry has successfully utilized the benefits of artificial intelligence (AI) in backend management for years. Today, particularly generative AI like ChatGPT and similar language models are experiencing significant hype as these technologies become directly accessible to consumers for the first time. They can leverage their extensive capabilities and explore how they can facilitate their daily lives. In this environment, the integration of generative AI into embedded financial services significantly strengthens the sector. Customers benefit from seamless experiences, cost savings, and increased efficiency. According to a Markets and Markets study, the global market for generative AI is expected to grow to USD 136.7 billion by 2030, with an annual growth rate of 36.7%. It is crucial that human expertise remains an integral part of the process. The combined forces of embedded finance and AI promise substantial savings. Routine tasks such as data entry and transaction processing are automated, significantly reducing the need for manual labor. Furthermore, generative AI can accelerate credit decision processes by summarizing data and creating accurate risk profiles, as well as documenting credit decisions. A particularly notable advancement is evident in customer service. AI-powered chatbots enable more efficient customer interaction as they better anticipate expectations and offer personalized experiences. These tools enhance customer satisfaction and foster brand loyalty. Ultimately, despite all technological advancements, human oversight remains essential to effectively steer the increasingly complex AI strategies and fully leverage their benefits.