Understand the potential – and power – of AI
Artificial Intelligence (AI) has become a buzzword, evoking a mix of confusion, trepidation, and excitement among consumers and businesses alike. We aim to demystify AI’s role, delineating its advantages and disadvantages (for both credit unions and their cardholders) while exploring actionable strategies for leveraging AI responsibly to advance the growth of your business.
How is AI being used?
AI encompasses various technologies, prominently Generative AI (a type of artificial intelligence that can produce content) and automation (setting up machines to follow commands in order to streamline arduous tasks). It’s a tool designed to augment human capabilities, automate routine processes, and drive innovation.
AI and fraud
When harnessed by fraudsters, AI technology can disguise typical phishing indicators such as misspelled names and poor grammar. However, it can also present solutions for detecting fraud within business processes.
Pros for your members and your business
AI can be trained to aid members in monitoring account activities for anomalies, alerting them to suspicious transactions, and enhancing overall security measures. Moreover, AI can help mitigate false declines, an advantage during downtime.
Outages, whether due to scheduled maintenance or unexpected events, often disrupt member experiences. By replicating uptime approval decisions with a high degree of accuracy1, industry leading AI solutions can help improve member experience by minimizing the impact of such interruptions.
Implementation strategies
Risk and fraud management, operations, and overall member experience present many opportunities for improvement with AI technology. A thorough strategy for implementing AI into your business is fundamental to harnessing its full potential.
Credit unions looking to utilize this technology should strive for transparency and accountability in their AI algorithms. They will need to thoroughly explain how the AI model makes decisions and remain accountable for outcomes. Additionally, all systems should be regularly audited and maintain human oversight in critical decisions to help achieve accurate results and avoid algorithmic bias.
Defining a path forward
AI is emerging as a transformative force. It can equip credit unions with tools to tackle multifaceted challenges, providing real-time visibility into member accounts, paving the way for better forecasting, and enhancing member service capabilities. AI offers credit unions a competitive edge through improved members experiences, heightened security, and enhanced operational efficiency.
Still, it’s crucial to recognize that responsible AI implementation is key. Ethical considerations and stringent protocols must underpin AI deployment to ensure that it serves as an ally rather than a threat to members’ security and trust.
Harnessing AI’s potential requires a balanced approach, combining technological ability with ethical responsibility. By leveraging AI conscientiously, credit unions can navigate challenges while delivering superior services to their members.
Sources:
https://www.linkedin.com/pulse/ai-friend-foe-visa/?trackingId=pAUFKW3HSIi98EPs4pM3Fg%3D%3D
https://usa.visa.com/visa-everywhere/blog/bdp/2023/07/07/downtime-can-be-1688729060636.html
