Amid fears that a recession is creeping over the horizon, executives have been warned that they could be facing a crisis that pits talent retention against innovation. This is in addition to incoming inflation pressures.
Many CFOs and other executives are searching for solutions that could help them weather future economic uncertainties. Perhaps AI-driven automation is the answer?
Automation as a Solution
Thanks to technology, the issues facing modern markets don’t have to be all-encompassing. One way to streamline operations would be to embrace AI tools that help clients reduce costs, fill employment gaps, and improve talent retention.
Banks can also benefit from AI. While many experts and individuals have reservations regarding the normalization of AI and machine learning platforms, the benefits of adopting this software may outweigh concerns. Automating certain tasks and practices could provide substantial benefits for banks and financial institutions.
Immediate automation benefits for banks include:
- Saving time and money
- Reallocating staff to more productive activities, so operations are more efficient
- Better serving merchant clients
However, this shouldn’t be taken to imply that automation can (or should) replace human staff members. Instead, automation should be considered a “teammate” that helps human workers do their jobs much more effectively.
Institutions are rightfully concerned about costs. Whether or not automation will cause a reduction in staff or lead to more conservative hiring practices. However, these concerns are not really valid.
Tech spending in 2023 will likely shoot through the roof as institutions look toward technology. Innovations include cloud-based planning, friction reduction, open-data sharing, and streamlined reporting. Each of these systems relies heavily on Ai-driven technology, but none of them should be considered a staff replacement.
Instead, the investments in innovation and machine learning technologies will become handy tools in teams’ arsenals, allowing talent to more swiftly and accurately respond to and deploy incoming data. Naturally, this would lead to more efficient workloads and, by extension, lower staffing costs. Less time will be wasted through “busy work.”
That said, to get the most of a hybrid human/automated workforce, it’s absolutely critical for leaders to tailor their approach to suit their company’s culture and ethics, first. Maintaining environmental, social, and corporate goals could mean:
- Hiring tech-savvy talent
- Investing in education for new staff
- Investing in retraining for legacy staff
- Prioritizing practices that align best with company goals.
A rational way to pair these goals with incoming technology is to establish OKRs (objective key results) when considering which technologies suit an organization best. Pairing OKRs with KPIs (key performance indicators) and other analytics, can drastically reduce wasted resources and single out which innovations integrate most effectively.
Automation + Talent = Success
Ultimately, automation is a tool, not a staff member. Neither concept should be confused for the other.
Frankly, AI and machine learning platforms cannot function to their full potential without human involvement. Perhaps one day, automated programs will eradicate much of the “busy work” that employees are bombarded with every day. That likely won’t negate the need for the human element, though.
Machines are excellent mimics. However, they can’t replicate the results produced through human thoughts, decisions, dynamic logic, or creativity. So while we are essentially encouraging banks and financial institutions to adopt and deploy more AI-driven automation in their business practices, institutions will still require human brains and interaction to achieve success with this technology.
Investing in automated systems now will help future-proof practices and streamline business processes. Getting the most value will still demand talented human guidance, though.