# How to unlock greater value from artificial intelligence
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-31
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Unlocking AI Potential in Finance: Challenges &
Meta Description: Discover how AI is revolutionising the finance sector with insights from Rob Smith, CTO of award-winning cloud services provider Creative ITC. Find out how AI solutions are driving efficiency and boosting ROI in finance firms.
URL: https://financedigest.com/how-to-unlock-greater-value-from-artificial-intelligencehtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1048063578-1736815669846-compressed.jpg)

**![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img3158wm-1736815669890-compressed.jpg)**

**Releasing the full potential of new technologies can be difficult. So, although finance** **firms are achieving success from** **artificial intelligence (AI)** **, scaling up enterprise-wide remains elusive for many. Rob Smith, CTO of award-winning cloud services provider** [**Creative ITC**](https://www.creative-itc.com/) **, explains how the growing trend of as-a-Service IT models is accelerating digital transformation across the finance sector and enabling IT leaders to unlock greater ROI.**

Uptake of artificial intelligence (AI) and machine learning (ML) in the banking and finance sector continues to grow as organisations seek competitive advantage. These new technologies promise significant benefits, offering new ways to improve decision-making, boost efficiency, fight fraud and enhance customer service. Following the pandemic, [half of UK banks](https://www.bankofengland.co.uk/quarterly-bulletin/2020/2020-q4/the-impact-of-covid-on-machine-learning-and-data-science-in-uk-banking) plan to invest more in these  technologies. By 2030, [global AI annual expenditure on AI by banks and finance firms](https://www.businesswire.com/news/home/20220131005583/en/The-Global-AI-in-Banking-Market-Will-Grow-to-64.03-Billion-by-2030-at-a-CAGR-of-32.6-During-2021-2030---ResearchAndMarkets.com) is predicted to reach $64.03 billion.

**Growing appetite for AI**

In finance, middle office departments are [increasingly adopting AI](https://www.mckinsey.com/business-functions/quantumblack/our-insights/global-survey-the-state-of-ai-in-2021) to deliver efficiencies and financial savings in areas like risk management, payment fraud and debt analysis. Automated [credit evaluation processes are expediting applications and improving loan](https://www.financedigest.com/6-reasons-to-take-a-car-loan-from-a-credit-union.html "6 Reasons to Take a Car Loan From a Credit Union") decisions. AI and ML solutions are flagging suspicious patterns to help [organisations to minimise fraudulent financial](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") transactions. Some firms are [optimising payment collections with AI](https://brighterion.com/credit-risk-how-lenders-are-using-ai-to-see-into-the-future-and-prevent-customers-from-going-into-delinquency/), reducing payment delinquency rates.

AI in investment [banking is supporting](https://www.financedigest.com/comserve-to-support-allied-irish-bank-nationwide.html "COMSERVE TO SUPPORT ALLIED IRISH BANK NATIONWIDE") human decision-making, too. The technology is being used by asset and [hedge fund](https://www.financedigest.com/what-is-a-hedge-fund.html "What Is A Hedge Fund") managers to identify performance changes and enable better-timed trades.

As AI matures, companies are looking to expand existing solutions across their entire organisations. AI deployment in front office areas such as [chatbots is increasing](https://www.businessinsider.com/ai-in-banking-report?r=US&IR=T) among larger players such as retail banks to rapidly resolve common customer enquiries 24/7.

**Common AI challenges**

Sadly, organisations seeking to unlock greater potential from AI all too often hit obstacles. Many AI projects still over-run, overspend and fall short in terms of results and attempts to scale up enterprise-wide often expose underlying problems. The most common constraints are:

- **Limitations of legacy infrastructure**

Many AI deployments result in [poor user experiences](https://www.financedigest.com/poor-user-experience-plaguing-wealth-management-firms-warns-radical-company.html "Poor user experience plaguing wealth management firms, warns Radical Company") and collaboration issues. Huge AI processing requirements overwhelm [data centre and network](https://www.financedigest.com/keysource-awarded-major-contract-to-design-nationwide-network-of-data-centres-throughout-china.html "KEYSOURCE AWARDED MAJOR CONTRACT TO DESIGN  NATIONWIDE NETWORK OF DATA CENTRES THROUGHOUT CHINA") capacity, causing latency issues and outages. Attempting to [share insights with stakeholders in multiple locations can reveal further weaknesses in legacy infrastructures, which haven’t been designed to share such datasets securely](https://www.financedigest.com/privacy-vs-security-is-the-cybersecurity-information-sharing-act-beneficial.html "PRIVACY VS SECURITY: IS THE CYBERSECURITY INFORMATION SHARING ACT BENEFICIAL?") at speed and scale.

- **In-house skillsets**

Specialist IT skills are required to optimise AI workloads and enable an organisation to realise its full [business benefits](https://www.financedigest.com/does-the-cloud-benefit-modern-business.html "Does the Cloud Benefit Modern Business?"). Most finance firms aren’t able to employ and retain large, multi-skilled IT teams, or devote adequate resources to ensure long-term AI success.

- **Unrealistic business case**

Total cost of ownership (TCO) doesn’t stop with acquiring the AI solution itself; it also includes implementing and maintaining the right IT infrastructure and [integration systems to support](https://www.financedigest.com/supporting-apple-pay-integration-in-japan.html "Supporting Apple Pay Integration in Japan") long-term AI deployment.

**Overcoming AI obstacles**

Many organisations quickly realise that trying to achieve this [perfect mix](https://www.financedigest.com/organic-vs-paid-promotion-why-the-perfect-mix-eludes-you.html "Organic VS Paid Promotion: Why the perfect mix eludes you") of infrastructure, resources and skills on-site is simply not feasible. [Finance firms are increasingly moving to the cloud](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?"), using a combination of cloud and on-premise platforms to give them the agility and scalability they need for high AI loads, without the need to own and maintain massive unused capabilities during quieter times. [Research](https://www.mckinsey.com/business-functions/quantumblack/our-insights/global-survey-the-state-of-ai-in-2021) shows that the businesses enjoying the biggest gains from AI are taking more advantage of cloud infrastructure than their peers.

Infrastructure-as-a-Service (IaaS) [overcomes legacy challenges](https://www.financedigest.com/5-challenges-to-overcome-in-governance-risk-and-compliance-magazine.html "5 Challenges to Overcome in Governance, Risk and Compliance-Magazine") and provides a cost-effective foundation for AI growth. Providing on-demand access to [computing power and storage via the cloud](https://www.financedigest.com/how-hybrid-cloud-computing-offers-the-best-of-all-worlds.html "How hybrid cloud computing offers the best of all worlds"), it allows firms to offload hardware costs, upgrade burdens and skilled resourcing requirements to a managed service provider (MSP). This quickly delivers [savings on data](https://www.financedigest.com/investing-in-a-first-party-data-strategy-can-save-the-day-for-retailers.html "Investing in a first-party data strategy can save the day for retailers") centre space, infrastructure, licensing, support, training and headcount, providing a fully-managed service in a predictable, monthly OpEx model.

**Futureproofing your AI growth strategy**

Look for a provider with a strong track record in [finance who will help you meet industry](https://www.financedigest.com/theres-nothing-artificial-about-the-role-of-ai-and-data-in-the-finance-industry.html "There’s nothing artificial about the role of AI and data in the finance industry ") and regulatory requirements. You should be free to choose which data and workloads to retain on-premise, while accessing the latest [technologies across public](https://www.financedigest.com/why-its-time-to-centralise-public-sector-technology.html "Why it’s time to centralise public sector technology"), private and hybrid cloud environments, delivered as a fully managed, seamless solution. Make sure you’ll [benefit from access to the latest technologies and regular updates](https://www.financedigest.com/5-benefits-to-updating-your-ir-tools.html "5 Benefits to Updating Your IR Tools"), rather than having to invest in expensive refreshes during the contract.

Be confident they can offer the right IaaS solution with ongoing management, optimisation and UK-based 24/7 support. Take a [close look at their technical credentials and check their expertise involving advanced graphics processing](https://www.financedigest.com/can-digital-labour-displace-cfos-in-the-close-process.html "CAN ‘DIGITAL LABOUR’ DISPLACE CFOS IN THE CLOSE PROCESS?") units (GPUs) capable of handling vast and complex workloads simultaneously. This will be essential to high-performance, hyperscaled [computing for rapid AI and real-time business](https://www.financedigest.com/how-cloud-computing-saves-businesses-money.html "How cloud computing saves businesses money") analysis.

Behind the impressive AI growth headlines, there’s widening gap between those [finance organisations leading the way](https://www.financedigest.com/6-ways-to-finance-your-dream-vacation.html "6 Ways to Finance Your Dream Vacation") in digital transformation and the firms who are striving to keep pace. The [leading financial institutions are driving a shift towards as-a-Service IT models across the sector to enjoy greater](https://www.financedigest.com/move-over-pcl-greater-londons-suburbs-take-the-lead-this-summer.html "Move over PCL, Greater London’s suburbs take the lead this summer") return on their technology investment. IaaS is empowering more effective handling of growing AI workloads to help finance firms [stay ahead](https://www.financedigest.com/staying-ahead-of-risk-this-black-friday.html "Staying Ahead of Risk This Black Friday") of the competition. Given the clear competitive advantages, now is the time for [finance companies to access the scalable solution they need](https://www.financedigest.com/what-needs-to-happen-to-improve-the-landscape-for-smes-trying-to-access-finance-options-in-the-uk.html "What needs to happen to improve the landscape for SMEs trying to access finance options in the UK") to unlock greater operational and strategic benefit.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---