One of the major technological trends that’s disrupting our existing economy now is artificial intelligence, or better known as AI. We have all heard about the great technological advancements that AI will bring to our lives, as well as the risks that such technologies bring.
Similarly, companies are facing the opportunities and threats that AI presents. The good news here is that most companies can embrace AI to become more competitive. In this article, I’ll look at how DBS Group Holdings Ltd (SGX: D05), one of the three main local banks listed in Singapore, has utilised AI to improve how it runs its business.
One of the most direct ways that AI can be used to improve efficiency is through 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 operations.
Here are three examples of how DBS Group has improved its efficiency through the use of AI (from its 2018 Annual Report).
- The bank automates 21% of processes across Singapore. This results in a flat headcount whilst transactions grew significantly.
- In HR, the Jobs Intelligence Maestro, a virtual recruitment bot, helped scan more than 80,000 fulfillment applications and reduced candidate screening time by 75%.
- In Finance, AI helped identify rate anomalies in the markets. This improved efficiency in tracking more than 140,000 market rates, daily.
Another important aspect of the bank’s business that has benefitted significantly from the adoption of AI is risk management. According to the DBS Group 2018 annual report, it uses AI and machine learning to detect suspicious transactions from activities like anti-money laundering.
By complementing its existing risk management team with the latest AI technologies, the bank can improve the overall efficiency and effectiveness of its risk management process. The result? Higher efficiency, lower risk and potentially, higher profitability.
AI is one of the most interesting technological enablers in our generation, which opens up plenty of possibilities for individuals and companies. Thus, investors of DBS Group might be excited to know that the bank is embracing AI to improve its business operations, which should hopefully lead to higher profits or better operating margins.
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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 recommended shares of DBS Group Holdings Ltd.