Swiss financial companies are increasingly relying on artificial intelligence (AI) in various areas – especially in customer contact. Generative AI is also on the rise despite data protection concerns. This is shown by a study by the Lucerne University of Applied Sciences in collaboration with Adnovum and Spitch.
Since the beginning of this year at the latest, terms such as AI or ChatGPT have become anchored in the language of the general public. However, these terms are not new for Swiss financial companies. You have been following the developments of these technologies for a long time and discussing their use. However, many people still hesitate when it comes to implementation. The Lucerne University of Applied Sciences (HSLU), together with Adnovum and Spitch, conducted a study examining how Swiss financial companies use chatbots, voicebots and so-called “generative AI”, which itself creates content. The study also shows where the biggest obstacles and challenges lie.
Companies rely on chatbots and voicebots for optimal customer interaction
The use of conversational AI, a dialogue system based on artificial intelligence, has become widespread in the corporate world in the form of chat and voice bots. Half of the financial companies surveyed are already using this technology, 46 percent of them in customer service, followed by marketing (14 percent) and the internal IT helpdesk (11 percent). Chatbots are still firmly established and are used successfully by over 60 percent of companies. Voicebots are also gaining popularity and are used by 14 percent of companies. What is particularly noteworthy, however, is that almost a quarter of the companies surveyed (24 percent) have integrated both chatbots and voicebots into their customer interactions. “Financial companies basically pursue three goals with such technologies: better customer satisfaction, cost reduction and increased efficiency,” says study author Sophie Hundertmark.
However, the study also shows that most of the bots used are currently rule-based, i.e. only provide answers to predefined questions. These bots are unable to automatically redirect the conversation to a human employee if a question cannot be answered. The customer is then forced to seek contact independently via another channel. In contrast, intelligent AI-based bots are more flexible and can seamlessly route conversations to human agents, significantly improving customer service.
Will AI answer my email queries in the future?
Generative AI like ChatGPT has been receiving more media attention since this year. The technology is also often used on an individual basis in many offices. However, there are currently only a few commercial solutions that go beyond manual prompting and content generation. “The technology is still young,” says Hundertmark. Nevertheless, financial companies have clear ideas for the future: almost all companies see the automatic answering of email inquiries from customers (81 percent) or the use in chatbots (71 percent) as possible areas of application for generative AI (Figure 1). Blog posts or social media posts could also be written by generative AI in the future. As with chat and voice bots, financial companies are primarily hoping for increased productivity and cost savings. According to Hundertmark, these goals should be much easier to achieve through the use of generative AI.
Possible uses of generative AI in Swiss financial companies
The companies surveyed see various possible uses for generative AI in their companies. Answering emails (81 percent) and using it as a chatbot (72 percent) are the most frequently mentioned cases. Both relate to use in customer service. Companies see further potential in the area of marketing, be it in content generation or marketing automation.
Data protection is a concern
Ethical concerns play a subordinate role for financial companies. Rather, it is data protection concerns that are having a braking effect. For 72 percent of the companies surveyed, this is the biggest obstacle to using generative AI. This is even more pronounced in banks than in insurance companies. It is therefore not surprising that banks are more reluctant to use generative AI than insurance companies. According to co-author of the study Florian Schreiber, one reason for this is the different concerns of customers: “While you tend to report damage to an insurance company, you also ask the bank about the account balance. The latter is more sensitive in terms of data protection.» In April, Helvetia was the first large insurer in Switzerland to announce the use of ChatGPT in customer service. The project is scientifically supported by the HSLU.
Co-study author Prof. Dr. Nils Hafner is certain that Helvetia will not remain the only Swiss financial company to rely on generative AI. “In order to remain competitive in the long term, banks and insurance companies will use generative AI in customer service, marketing or sales in order to save costs and relieve employees,” says Hafner.
Study: “Conversational and Generative AI in Finance”
For the “Conversational and Generative AI in Finance” study, the Institute for Financial Services Zug IFZ of the Lucerne University of Applied Sciences and Arts surveyed 47 employees in leading positions in Swiss financial companies about current and future use cases. In addition, it was asked what are the obstacles to the use of chat and voice bots and generative AI or ChatGPT.
Source: University of Lucerne, Institute for Financial Services Zug IFZ, Aug 28, 2023