3 January 2024: In their annual reports, Indian banks have employed an extensive array of terminology and concepts relating to AI and Machine learning.
Pritish Bagadi
According to the Reserve Bank of India's banking and trends report, the use of AI-related terms in Indian banks has expanded significantly, particularly in private sector banks. However, adoption among public sector banks has been somewhat subdued, rising approximately 2.5 times throughout the study period.
The chatbots are usually accessible through the banks' websites. In the case of PSBs, mega-mergers appear to have boosted chatbot adoption, with combined organisations embracing acquirers' technology. A word cloud analysis highlights banks' emphasis on automation, which may be motivated by the desire to increase efficiency while also improving fraud detection and other predictive analytics.
"AI is increasingly being used in areas such as asset management, algorithmic trading, credit underwriting, and blockchain-based financial services," the Reserve Bank of India (RBI) stated in its publications. According to the top banks' study, AI will alter the financial services sector by encouraging the development of new goods and services, opening up new markets and industries, and paving the path for innovation.
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AI and ML Lingo in Banks
According to a recent survey, over one-third of responding financial services, organisations expect AI technology to assist 51 to 75 percent of their workload in five years. The same is being done by Indian banks, whether private or public sector.
According to the RBI investigation, practically every bank in India is utilising popular AI and ML dictionaries/glossaries such as Google Vertex AI, Google Developers, IBM, NHS AI Lab, the Council of Europe, and Large Language Models such as ChatGPT and Bard. Chatbots for customer support are also being introduced by NBFCs.
Indian banks have employed an extensive variety of AI and Machine Learning terminology and concepts. Chatbots, Artificial Intelligence, Cloud Computing, Machine Learning, Customer Segmentation, data analytics, robotics support automation, the Internet of Things, and many other technologies are part of the world.
ICICI Bank used the term Artificial Intelligence six times in its FY23 annual report, Machine Learning four times, Cloud Adoption and Computing nine times, and Data Analytics five times. The bank used Machine Learning five times, Artificial Intelligence ten times, Cloud 25 times, and Data Analytics three times in its FY23 Annual Report. State Bank of India, India's largest public sector bank, used AI three times, Machine Learning twice, and Data Analytics only once.
According to RBI research conducted in 2016-2017, the number of banks utilising chatbots was five, which increased to ten in FY18. From ten in FY18 to twelve in FY23, the number of banks with chatbots increased to nearly twenty-six in FY23.