Written by Jathena,

No.At least not right away. No amount of technology has thus far replaced all human labor, especially in the service industry. Banking as an industry is no exception. It has benefitted greatly from improvements in technology but these improvements have come at a time when banking is in crisis.

There’s been a lot of talks recently about machine learning and the advancements in AI Chatbots. If AI chatbots take off as planned, they’re promising to revolutionize customer service as we know it. Banks are keenly interested in AI Chatbots as a way of improving their customer service experience and reducing their own operating costs. This is vital for the survival of the industry as a whole and more so now that people have lost confidence in banks.

So how will AI chatbots come to help? Well first off, what’s an AI chatbot? It’s a software application that runs automated tasks over the internet. It’s what would be called in simpler terms, an internet robot. It functions by performing tasks that are usually repetitive in nature and that tend to be simple.

So far, there hasn’t been anything to write home about when it comes to self-help software as they tend to be very frustrating to end users. In most cases, you end up calling the customer service center to talk to someone. AI chatbots are poised to change this experience. How?

Banks have teamed up with machine learning experts to try and improve self-help software. This has led to a great deal of investment into research and development of AI Chatbots. What’s different this time around? Instead of having a one size fits all self-help software, banks are getting tailormade Chatbots. Each banking client that has a chatbot integrated into their service center, will now have to get it personalized to the requirements of the institution and its services.

The advantage of this is that it makes the channel, less complex and more adaptive. It also provides what these machinists call, deep learning. Basically, that means a well-programmed computer software that deals with the same issues of an industry will be able to organize the enormous amounts of data, derive patterns that can then be used to learn. This makes the chatbot very adept at solving the day to day repetitive queries brought in by clients.

Are AI chatbots delivering as promised? Yes, with a measure of success. Banks such as Swedbank, Bank of America, SEB, Capital One, Wells Fargo have now incorporated Chatbots into their customer service programmes. These banks are reporting that they are having a measure of success in helping their clients deal with repetitive issues and issuing effective solutions. Remember that AI chatbots are constantly learning.

There has since been an increase in value for the banks. Less time is spent on calls with clients, thus freeing up time for the staff to handle more complex calls that come in.

Disruptive technologies are now an industry norm. Machine learning will most definitely make a greater impact on customer service as more key players team up with AI enthusiasts and develop more advanced AI Chatbots that will greatly improve the customer experience. Question is, are we prepared for the fallout of such rapid development?.