We assess the current state of the market for AI-powered chatbots for banks and look at how generative AI is shaking things up.
AI-based chatbots are nothing new for the banking industry.
This technology category uses conversational AI to automate bank-customer interactions, allowing customers to find quick answers to their questions while providing banks with a potentially valuable source of customer data.
However, they’ve historically faced limitations such as misinterpreting complex questions by relying too heavily on keywords, as well as providing responses that can sound too robotic and be off-putting to customers.
Generative AI could help lower these barriers by making customer interactions more human-like and complex, broadening the range of tasks chatbots could handle. Eventually, genAI-powered chatbots could act as personal financial advisors, helping customers to plan long-term finances and make better financial decisions.
Tech companies are quickly bringing solutions to market. In May, AI chatbot developer Kasisto launched a large language model (LLM) specifically trained for banking applications.
Below, we dive into the AI-powered chatbot market and look at how genAI could transform the category within the context of retail banking.
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