With the EU AI Act and ongoing digital transformation efforts, the final panel of the day focused on the influence of AI on regulation and customer experience.
The session was led by Gary Wright from Finextra, featuring Jonathan Ede, director of data technology at CACI; Aman Luther, AI lead at AFME; and Stathis Onasoglou, CFA – EMEA FSI principal at Google Cloud.
Ede opened the discussion by highlighting the primary challenge in AI adoption. He emphasized the importance of integrating AI across the entire organization instead of confining it to isolated applications. “To unlock the true value of AI, we need to connect these systems and improve data integration and availability,” he stated.
Luther addressed the historical challenges banks face with technological changes due to significant technical debt and legacy infrastructure. However, he noted a cultural shift within banks as they become more aware of these risks. “Many banks are starting to employ the right skill sets and adjust their models. We’re assisting them in evaluating new proposals related to AI, emphasizing the need for a distinct appraisal process,” he explained.
Ede added that AI transcends typical technology updates, necessitating an elevated strategy that involves organizational leadership beyond just the CTO or CIO. “AI is fundamentally altering how organizations operate, making it a CEO-level concern,” he said.
Onasoglou expanded on this point, noting that return on investment (ROI) for AI may not be solely financial. It can also involve improvements in customer experience or innovation that eventually lead to financial benefits.
The panel then shifted focus to governance and regulation. Luther mentioned that while some may argue against it, regulation often slows down innovation. He highlighted the differences in approaches to AI regulation across regions like the UK, US, and EU, noting that frameworks such as the EU AI Act could impose additional challenges, particularly for smaller firms. The crux of the discussion revolved around determining where to draw the line in regulation.
Ede agreed, questioning whether regulation truly promotes innovation. He acknowledged that while current proposals are pragmatic, they must also adapt swiftly to keep pace with the rapidly evolving AI landscape. “We need to ensure that our regulations don’t hinder growth compared to less restrained markets like China,” he cautioned.
Onasoglou referenced a recent survey by Google of 340 senior decision-makers in banking, which revealed that major obstacles for AI implementation included a shortage of clean, analysis-ready data and a lack of clarity in regulatory requirements.
The panel concluded by discussing the balance between AI’s impact on customers and organizational operational resilience. Onasoglou pointed out that operational efficiency and customer experience can coexist rather than compete.
Luther indicated that in wholesale banking, while fewer customer-facing applications exist, significant gains in operational efficiency are being realized through AI. For instance, many members are utilizing AI to predict transaction failures, allowing them to address potential issues proactively.
Ede, focusing on retail banks, noted the positive changes in customer experience driven by AI, though he observed that organizations are still not fully leveraging these improvements internally.
In closing, Wright summarized that organizations must adapt their strategies in response to regulatory pressures, competitive dynamics, and evolving customer needs, with AI playing a crucial role in this transformation.