The banking, financial services, and insurance (BFSI) sector is experiencing a significant transformation driven by artificial intelligence (AI), which is set to become mainstream in the industry.

Key drivers for AI adoption in BFSI include improved customer experience, innovation, and operational efficiency, as highlighted by TCS's Chief Technology Officer Babu Unnikrishnan.

AI's transformative potential encompasses hyper-personalized campaigns, efficient Know Your Customer (KYC) processes, advanced fraud management, and enhanced customer engagement.

OpenText, a major player in information management, and Tata Consultancy Services (TCS), a leader in IT services, are collaborating to integrate AI into BFSI operations, leveraging generative AI and advanced technologies.

This partnership combines OpenText's technology with TCS's implementation expertise to foster business growth and operational efficiency within the BFSI sector.

A recent survey indicates that 88% of financially successful BFSI companies prioritize AI for driving innovation.

Future AI implementations in BFSI will focus on innovation and revenue growth, emphasizing a realistic understanding of AI capabilities and challenges.

Large language models and other AI technologies are expected to significantly enhance business processes, particularly in the insurance and capital markets sectors.

Lars Rossen from OpenText highlights that these models can improve information collation and insights generation, enhancing overall business processes.

Pradeep Kamalanabhan from TCS notes that combining traditional AI with generative AI will bolster capabilities in knowledge management and content generation.

However, challenges in AI adoption include ethical considerations, data security, privacy issues, and the necessity for organizational changes within BFSI firms.

To address these challenges, BFSI firms must establish ethical guardrails and ensure data protection in AI-driven outcomes, especially given the sensitivity of financial data.