Artificial intelligence (AI) is driving change across almost every major industry today. Worldwide spending on AI is expected to reach US$110 billion by 2024, the International Data Corporation predicts. One of the biggest spenders will be financial services, a key sector in Temasek’s investment portfolio.
As a generational investor, Temasek is building AI capabilities to not only drive better business outcomes in our ecosystem, but also shape a better world. To do so, AI solutions must be responsibly designed, developed and deployed.
Financial services is a sector that can expand economic opportunity while meeting societal needs. According to a McKinsey study, AI solutions could add an additional US$2 trillion of annual value for banks and insurance companies globally.
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With the right strategy, financial services firms — namely banks and insurance companies — can unlock the full potential of responsible AI, reinventing the way they meet the needs of society and power economic growth.
Contrary to the popular belief that regulation hinders innovation, 3 in 4 financial services companies said they would appreciate clear regulation and standards on the use of AI.
Trust is a must in financial services. An overwhelming 93% of companies demand that AI solutions be trustworthy.
While all financial services companies use AI in their processes in some way, differences exist in the extent of the deployment of AI. Only 13% are AI leaders — companies that are effectively using responsible AI in most of their processes to create value.
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