AI Report Digital - Flipbook - Page 8
NEXT BEST ACTION
By: Kiah Lau Haslett
There is a technique in artificial intelligence
called “next best action.” It’s a predictive
approach that uses available data to recommend
the next thing a company or person could do, generating a series of personalized stepping stones.
Financial institutions looking for ways to incorporate AI into their internal processes and procedures could take inspiration from the approach to
think about what the next best action looks like
for their organization.
populated with stakeholders from business units, support and
control functions across the bank, which Chief Operations
Officer Russell Barrett sponsors and the chief data officer
chairs. Barrett says the group has two goals that work in
concert: organizing and overseeing the bank’s AI projects and
figuring out how to manage them within the $60.9 billion
bank’s organizational capacity. Valley prioritizes AI investments that can enhance the customer experience or build
greater trust. It’s also prioritizing technologies that would
increase the bank’s effectiveness and efficiency.
To start, these initiatives should have support from leadership
“We put some guiding principles on what this cross-function-
to achieve meaningful inclusion throughout the institution.
al group should be doing. One thing we wanted it to be was
with purpose — it wasn’t just to get a bunch of people in a
“I think that without [that support], it’s very hard to actually
room and create bureaucracy or excessive governance on one
implement AI. It’s got to be a CEO or CTO that pushes it
side, or just to sit here and do nothing on the other side,”
through because it does require retooling the organization.
Barrett says.
It requires putting aside resources in order to structure
the data, buy AI tools and train people to identify where
The group creates organizational alignment for Valley’s
the benefits are and so on,” says Alexandra Mousavizadeh,
approach to AI. They learn together, identify use cases and
cofounder and CEO of Evident, a research firm focused on AI
engage with vendors. They also consider how the bank will
adoption within the banking sector. “If that decision [isn’t] a
manage the risk of these technologies, and what policies and
strategic vision for the community bank, then it’s very hard.
procedures they will need. Because the group represents so
So, make it your strategic priority.”
many different areas of the bank, no one division is tasked
with owning AI technology or making decisions about use
AI adoption and use isn’t so much a decision about technol-
cases or oversight.
ogy but about strategy, says Ashvin Parmar of the consulting firm Capgemini. The objectives, goals and strategy of a
business line or unit within a bank should inform how and
where it will add AI — not the other way around — since
Starting Small
those groups will own and operate the technology once it’s
But with so many potential use cases, where should a bank’s
implemented.
AI working group start?
Mousavizadeh says many global banks that have laid the
Identifying and prioritizing projects is an important task
groundwork for AI use cases have started by setting up a
for the bank. Too much caution and nothing gets done; too
cross-functional system or group to take the lead on AI.
much excitement and the bank could engage in “random acts
These groups help centralize decision-making and coordinate
of digital” with little to show for it at the end, wrote Garth
efforts across the institution by prioritizing use cases, con-
Andrus, the president of AI consultant Cognixia, for ”The
ducting due diligence on vendors, and overseeing testing and
Financial Brand” in August 2023.
implementation.
“Random acts of digital refers to the sporadic, impulsive, or
Valley National Bank uses a cross-functional working group
6 | FINXTECH INTELLIGENCE REPORT
unaligned planning or implementation of digital technologies.
