8 mistakes that will guarantee AI fails at your financial institution
Now that AI tools are here to stay, banks have to calm down, look beyond the hype, and adopt the technology in an intelligent way. A report from RAND Corp. draws on interviews with 65 AI-focused data scientists to identify key reasons that as many as four out of five attempts to use the technology fail to realize the intended benefits.
Banks and credit unions venturing into the development of any type of artificial intelligence application need to go in for the right reasons, with reasonable expectations, and with their eyes open. Otherwise, they’ll have a good amount of company in the AI graveyard, according to a study from RAND Corporation.
Failures include not only flops that waste time, talent and money, but “successful” efforts that produce dubious results.
The research organization reports that the failure rate for AI projects can run as high as 80%.
“Despite the promise and hype around AI, many organizations are struggling to deliver working AI applications,” RAND states in its report. “… Managers and directors find themselves under enormous pressure to do something — anything — with AI to demonstrate to their superiors that they are keeping up with the rapid advance of technology.”
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