We are living in an ever-changing business environment. On a daily basis, we read about how technological advancements have enabled start-ups to challenge incumbents, usually by providing better products/services or at materially lower prices.
One of those major technological trends disrupting our existing economy now is Artificial Intelligence (AI), or better known as AI. We have all heard about how AI is going to replace our jobs, or how it will eliminate big and slow-moving incumbents. Yet, existing players are not standing still and are incorporating AI into their businesses to improve their competitiveness.
A perfect example of this is Oversea-Chinese Banking Corp Limited (SGX: O39), one of the three main local banks listed in Singapore, which has utilised AI to improve its business.
One of the most direct ways that AI can be used in a business is in business process automation. Here, AI can improve the existing business processes as it replaces human labour in many aspects, especially in automating tedious and repetitive tasks. This results in greater efficiency and effectiveness in day-to-day operations.
So how has AI helped OCBC in improving its business processes? Below are some examples:
Source: OCBC’s 2018 Annual Report
Another important aspect of the bank’s business that has benefitted significantly from the adoption of AI is risk management.
According to OCBC, it is one of the first Singapore banks to use AI and machine learning to detect suspicious transactions from illicit activity such as fraud. Not only that, it has also partnered with start-ups to explore AI in the detection of anti-money laundering patterns missed by humans.
By complementing its existing risk management team with the latest AI technologies, OCBC can improve the overall efficiency and effectiveness of its risk management process. The result? Higher efficiency, a better work environment, and higher profitability!
Betting on AI for the future
We are living in an exciting time where new technology will eventually open up groundbreaking possibilities. Thus, it’s important that companies embrace these changes to improve overall competitiveness. So far, it appears that OCBC has done just that.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has a recommendation for Overseas-Chinese Banking Corp Limited.