AI in BFSI: Success Stories & Insights

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Over the past year, Ecosystm has conducted extensive research, including surveys and in-depth conversations with industry leaders, to uncover the most pressing topics and trends. And unsurprisingly, AI emerged as the dominant theme.

Here are some insights from our research.

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Click here to download ‘AI in BFSI: Success Stories & Insights’ as a PDF

From personalised recommendations to streamlined operations, AI is transforming the products, services and processes in the BFSI industries. While leaders realise that AI holds significant potential, turning that potential into reality is often tough. Many BFSI organisations struggle to move beyond AI pilots because of some key barriers.

Biggest AI Barriers in BFSI

Despite the challenges, BFSI organisations are witnessing early AI success in these 3 areas:

  1. 1. Customer Service & Engagement
  2. 2. Risk Management & Fraud Detection
  3. 3. Process Automation & Efficiency

Customer Service & Engagement Use Cases

  • Virtual Assistants and Chatbots. Delivering real-time product information and customer support
  • Customer Experience Analysis. Analysing data to uncover trends and improve user experiences
  • Personalised Recommendations. Providing tailored financial products based on user behaviour and preferences

“While we remain cautious about customer-facing applications, many of our AI use cases provide valuable customer insights to our employees. Human-in-the-loop is still a critical consideration.” – INSURANCE CX LEADER

Risk Management & Fraud Detection Use Cases

  • Enhanced Credit Scoring. Improved assessment of creditworthiness and risks
  • Advanced Fraud Detection. Easier detection and prevention of fraudulent activities
  • Comprehensive Risk Strategy. Assessment of risk factors to develop effective strategies

“We deployed enterprise-grade AI models that are making a significant impact in specialised areas like credit decisioning and risk modelling.” – BANKING DATA LEADER

Process Automation and Efficiency

  • Backend Process Streamlining. Automating workflows and processes to boost efficiency
  • Loan & Claims Processing. Speeding up application and approval processes
  • Invoice Processing. Automating invoice management to minimise errors

“Our focus is on creating a mindset where employees see AI as a tool that can augment their capabilities rather than replace them.” – BANKING COO

Singapore Fintech Festival 2024
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5 Key Trends Shaping Crypto Landscape

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The cryptocurrency industry is no longer just a niche market; it’s a burgeoning global financial force, poised to reach a staggering USD 11.7 billion by 2030. Fuelled by rapid technological advancements, evolving regulatory landscapes, and increased mainstream adoption, the sector is facing both unprecedented challenges and exciting opportunities. As blockchain and digital currencies continue to disrupt traditional finance, understanding the key trends driving these changes is essential for anyone navigating the crypto ecosystem. 

#1 AI’s Game-Changing Impact on Crypto Exchanges 

AI is revolutionising the way crypto exchanges operate – from enhanced efficiency and security to a more personalised user experience.  

One of the most significant contributions of AI is the use of automated trading bots. These bots can analyse vast amounts of market data, predict price movements, and execute trades with precision, often outperforming human traders. By operating 24/7 and eliminating emotional biases, AI-powered bots offer a significant advantage in the fast-paced world of cryptocurrency trading. 

AI also plays a crucial role in improving security on crypto exchanges. By using machine learning algorithms to monitor and analyse transaction patterns, AI can identify and mitigate the risks of hacks and fraud, which have plagued the cryptocurrency space for years. For example, in 2023 alone, crypto scams led to losses of over USD 5.6 billion in the US. 

AI personalises the user experience by offering tailored recommendations based on individual trading behaviour. Additionally, AI performs market sentiment analysis by processing unstructured data from social media, news outlets, and other online platforms, providing valuable insights into market trends. AI also plays a crucial role in improving security on crypto exchanges.  

 #2 Global Cryptocurrency Regulations: A Maturing Landscape 

Cryptocurrency regulations are evolving rapidly around the world as governments strive to manage risks and protect consumers. The Markets in Crypto-Assets (MiCA) regulation in the EU is a significant milestone, requiring licensing for all crypto firms operating within the bloc and mandating stringent consumer protection measures, including capital requirements for stablecoins. 

In the US, efforts like the Financial Innovation and Technology (FIT) for the 21st Century Act and the Blockchain Regulatory Certainty Act are expanding oversight of the industry and clarifying the roles of different regulatory bodies. Similar regulatory movements are underway across Asia. Japan has recognised crypto as legal property, and South Korea passed the Virtual Asset Users Protection Act to increase transparency. However, countries like China and India maintain restrictive approaches, with bans on trading and mining. 

Brazil’s 2023 Cryptoassets Act demonstrates the global trend towards more robust regulation, aiming to prevent fraud in the crypto sector.  

#3 Mergers and Acquisitions: A Strategic Play in the Crypto Space 

As traditional financial institutions race to embrace the digital asset revolution, mergers and acquisitions are becoming a strategic tool to gain a foothold in the cryptocurrency market. By acquiring crypto companies with real-world applications and robust infrastructure, these institutions aim to expand their digital asset capabilities and stay ahead of the curve. 

Examples like Ripple’s acquisition of Metaco and Coinbase’s purchase of One River Digital highlight the growing interest in integrating traditional financial services with blockchain technology. These M&A deals not only enhance service offerings but also facilitate entry into new markets and the development of innovative solutions. 

Looking ahead, we can expect to see even larger financial institutions playing a more active role in crypto mergers and acquisitions. As the demand for scalable, compliant blockchain solutions continues to grow, strategic partnerships and acquisitions will become increasingly important in paving the way for broader adoption of digital assets. 

#4 CBDCs and Stablecoins: A New Era in Digital Finance 

Central Bank Digital Currencies (CBDCs) are gaining significant traction, with 86% of central banks actively exploring their potential. Major economies like the UK, EU, and US are in various stages of CBDC research and development, carefully considering privacy concerns, financial stability, and the impact on commercial banks. Smaller nations like the Bahamas, Nigeria, and Jamaica have taken the lead, launching CBDCs to serve as digital alternatives to traditional fiat currencies. 

In the private sector, stablecoins have experienced substantial adoption. Major financial institutions and payment providers are integrating stablecoins like USDC and Tether (USDT) into their services, processing billions in daily transaction volume. This growth has prompted regulators worldwide to develop comprehensive frameworks, such as the EU’s MiCA regulation and similar efforts in the UK and US. These regulatory initiatives aim to provide clear guidelines while fostering innovation. 

As traditional financial institutions explore stablecoin integration for both retail and wholesale applications, the future of digital finance looks increasingly promising.  

#5 The Focus on User Experience and Security 

As the crypto landscape continues to evolve, the focus on user experience and security has never been more critical. Cyberattacks are becoming increasingly sophisticated, targeting crypto exchanges and DeFi platforms alike. Historically, the industry has been developer-centric, with little attention paid to creating intuitive platforms for everyday users. However, as more consumers embrace blockchain-based financial services, there is a growing demand for seamless, user-friendly interfaces. 

Security is another major concern. High-profile hacks and fraud have tarnished the reputation of the crypto industry, leading to skepticism among users and regulators. DeFi platforms, in particular, have been frequent targets due to vulnerabilities in smart contracts. To foster widespread trust and adoption, the industry must prioritise integrating security features by design, such as blockchain analytics for detecting fraudulent activities and advanced risk management tools. 

Emerging technologies like social recovery wallets, which help users regain access to lost funds, and improvements in blockchain scalability and efficiency, will be instrumental in attracting more mainstream users.  

Crypto’s Future: A Balancing Act 

The future of the crypto industry hinges on its ability to strike a delicate balance between innovation, regulation, and security. As digital assets become more deeply integrated into mainstream finance, we can expect to see a surge in tokenised real-world assets, stablecoins, and central bank digital currencies. 

Collaboration between regulators, financial institutions, and tech innovators will be essential in shaping a secure and inclusive ecosystem. Ultimately, the success of crypto will depend on its ability to build trust while delivering the efficiency and transparency that define a rapidly evolving digital economy. 

Singapore Fintech Festival 2024
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Ecosystm Podcast Episode 37- Insights from Shayan Hazir (HSBC)

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Join us for an enlightening conversation with Shayan Hazir, Chief Digital Officer, ASEAN at HSBC, and Sash Mukherjee, VP of Industry Insights at Ecosystm, as they explore the profound impact of Technology on the financial landscape.

In this comprehensive discussion, Shayan sheds light on the shape of innovation in today’s tech-centric world and the challenges of orchestrating innovation within large organisations. He also addresses the evolving expectations of younger generations stepping into the role of banking customers.

Shayan further examines the strategic innovation approach in banking, discussing how legacy systems, governance, and the balance of investment priorities impact the innovation journey. He shares his perspective on fostering a culture of experimentation and responsibly embracing emerging technologies like generative AI.

Additionally, Shayan discusses the transformative potential of blockchain, including its role in central bank digital currencies (CBDCs) and tokenised assets, emphasising the necessity for technology convergence to enhance customer experiences.

Throughout this dialogue, he underscores the importance of collaboration between regulators and financial institutions to create safe environments for innovation.

🎧 Don’t miss this insightful dialogue—listen to the complete podcast here.

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Southeast Asia’s Banking Transformation: Leaders’ Insights

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Southeast Asia’s banking sector is poised for significant digital transformation. With projected Net Interest Income reaching USD 148 billion by 2024, the market is ripe for continued growth. While traditional banks still hold a dominant position, digital players are making significant inroads. To thrive in this evolving landscape, financial institutions must adapt to rising customer expectations, stringent regulations, and the imperative for resilience. This will require a seamless collaboration between technology and business teams.

To uncover how banks in Southeast Asia are navigating this complex landscape and what it takes to succeed, Ecosystm engaged in in-depth conversations with senior banking executives and technology leaders as part of our research initiatives. Here are the highlights of the discussions with leaders across the region.  

#1 Achieving Hyper-Personalisation Through AI

As banks strive to deliver highly personalised financial services, AI-driven models are becoming increasingly essential. These models analyse customer behaviour to anticipate needs, predict future behaviour, and offer relevant services at the right time. AI-powered tools like chatbots and virtual assistants further enhance real-time customer support.

Hyper-personalisation, while promising, comes with its challenges – particularly around data privacy and security. To deliver deeply tailored services, banks must collect extensive customer information, which raises the question: how can they ensure this sensitive data remains protected?

AI projects require a delicate balance between innovation and regulatory compliance. Regulations often serve as the right set of guardrails within which banks can innovate. However, banks – especially those with cross-border operations – must establish internal guidelines that consider the regulatory landscape of multiple jurisdictions.

#2 Beyond AI: Other Emerging Technologies

AI isn’t the only emerging technology reshaping Southeast Asian banking. Banks are increasingly adopting technologies like Robotic Process Automation (RPA) and blockchain to boost efficiency and engagement. RPA is automating repetitive tasks, such as data entry and compliance checks, freeing up staff for higher-value work. CIMB in Malaysia reports seeing a 35-50% productivity increase thanks to RPA. Blockchain is being explored for secure, transparent transactions, especially cross-border payments. The Asian Development Bank successfully trialled blockchain for faster, safer bond settlements. While AR and VR are still emerging in banking, they offer potential for enhanced customer engagement. Banks are experimenting with immersive experiences like virtual branch visits and interactive financial education tools.

The convergence of these emerging technologies will drive innovation and meet the rising demand for seamless, secure, and personalised banking services in the digital age. This is particularly true for banks that have the foresight to future-proof their tech foundation as part of their ongoing modernisation efforts. Emerging technologies offer exciting opportunities to enhance customer engagement, but they shouldn’t be used merely as marketing gimmicks. The focus must be on delivering tangible benefits that improve customer outcomes.

#3 Greater Banking-Fintech Collaboration

The digital payments landscape in Southeast Asia is experiencing rapid growth, with a projected 10% increase between 2024-2028. Digital wallets and contactless payments are becoming the norm, and platforms like GrabPay, GoPay, and ShopeePay are dominating the market. These platforms not only offer convenience but also enhance financial inclusion by reaching underbanked populations in remote areas.

The rise of digital payments has significantly impacted traditional banks. To remain relevant in this increasingly cashless society, banks are collaborating with fintech companies to integrate digital payment solutions into their services. For instance, Indonesia’s Bank Mandiri collaborated with digital credit services provider Kredivo to provide customers with access to affordable and convenient credit options.

Partnerships between traditional banks and fintechs are essential for staying competitive in the digital age, especially in areas like digital payments, data analytics, and customer experience.

While these collaborations offer opportunities, they also pose challenges. Banks must invest in advanced fraud detection, AI monitoring, and robust authentication to secure digital payments. Once banks adopt a mindset of collaboration with innovators, they can leverage numerous innovations in the cybersecurity space to address these challenges.

#4 Agile Infrastructure for an Agile Business

While the banking industry is considered a pioneer in implementing digital technologies, its approach to cloud has been more cautious. While interest remained high, balancing security and regulatory concerns with cloud agility impacted the pace. Hybrid multi-cloud environments has accelerated banking cloud adoption.

Leveraging public and private clouds optimises IT costs, offering flexibility and scalability for changing business needs. Hybrid cloud allows resource adjustments for peak demand or cost reductions off-peak. Access to cloud-native services accelerates innovation, enabling rapid application development and improved competitiveness. As the industry adopts GenAI, it requires infrastructure capable of handling vast data, massive computing power, advanced security, and rapid scalability – all strengths of hybrid cloud.

Replicating critical applications and data across multiple locations ensures disaster recovery and business continuity. A multi-cloud strategy also helps avoid vendor lock-in, diversifies cloud providers, and reduces exposure to outages.

Hybrid cloud adoption offers benefits but also presents challenges for banks. Managing the environment is complex, needing coordination across platforms and skilled personnel. Ensuring data security and compliance across on-prem and public cloud infrastructure is demanding, requiring robust measures. Network latency and performance issues can arise, making careful design and optimisation crucial. Integrating on-prem systems with public cloud services is time-consuming and needs investment in tools and expertise.

#5 Cyber Measures to Promote Customer & Stakeholder Trust

The banking sector is undergoing rapid AI-driven digital transformation, focusing on areas like digital customer experiences, fraud detection, and risk assessment. However, this shift also increases cybersecurity risks, with the majority of banking technology leaders anticipate inevitable data breaches and outages.

Key challenges include expanding technology use, such as cloud adoption and AI integration, and employee-related vulnerabilities like phishing. Banks in Southeast Asia are investing heavily in modernising infrastructure, software, and cybersecurity.

Banks must update cybersecurity strategies to detect threats early, minimise damage, and prevent lateral movement within networks.

Employee training, clear security policies, and a culture of security consciousness are critical in preventing breaches.

Regulatory compliance remains a significant concern, but banks are encouraged to move beyond compliance checklists and adopt risk-based, intelligence-led strategies. AI will play a key role in automating compliance and enhancing Security Operations Centres (SOCs), allowing for faster threat detection and response. Ultimately, the BFSI sector must prioritise cybersecurity continuously based on risk, rather than solely on regulatory demands.

Breaking Down Barriers: The Role of Collaboration in Banking Transformation

Successful banking transformation hinges on a seamless collaboration between technology and business teams. By aligning strategies, fostering open communication, and encouraging cross-functional cooperation, banks can effectively leverage emerging technologies to drive innovation, enhance customer experience, and improve efficiency.

A prime example of the power of collaboration is the success of AI initiatives in addressing specific business challenges.

This user-centric approach ensures that technology addresses real business needs.

By fostering a culture of collaboration, banks can promote continuous learning, idea sharing, and innovation, ultimately driving successful transformation and long-term growth in the competitive digital landscape.

Singapore Fintech Festival 2024
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Beyond Profit: What Impact Venture Funds Seek in Startups

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If you are a startup seeking investment, you might initially consider venture capital or business angels. However, with the increasing awareness of global needs for humanity, society, and the planet, impact investing has emerged as a significant source of finance for good. This market, which was valued at approximately USD 230 billion in 2017, is projected to reach around USD 1 trillion by 2025.

For mission-driven startups addressing critical issues in healthcare, education, or climate change, it’s essential to explore the potential of attracting impact venture funds. These funds offer not just capital but also collaborative opportunities. Even if you’re just starting out or operating on a small scale, understanding the investment criteria early on is crucial.

Impact venture funds aim to generate measurable social and/or environmental impact alongside financial returns.

In addition to the conventional expectation of financial performance, here are 5 key investment criteria for impact venture funds.

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Click here to download ‘Beyond Profit: What Impact Venture Funds Seek in Startups’ as a PDF

#1 The Impact is Positive

But what does “impact” actually mean? Many people use the term in a generic sense to describe some positive effect of a business or organisation. However, in the world of “impact investing”, impact has a specific meaning.

Impact is the ultimate large-scale contribution of a business, company or country to society including the environment.

This impact can be both positive and negative. It is fair to say that in the process of producing goods and services worldwide, positive and negative impacts are created simultaneously. The key question is whether the positive outweighs the negative.

#2 The Impact is Social or Environmental

As for a business, company, or country’s contribution to society, the UN Sustainable Development Goals are a solid framework are a solid framework for orientation. These are the pressing problems that once improved will lead to a more balanced and sustainable future.

Any company of any size and from any industry can easily identify which of the SDGs their products and services support.

By using references to certain SDGs organisations can then communicate their vision and mission more clearly to investors but also other relevant stakeholders such as governments, communities, suppliers, and consumers.

#3 The Impact is Long-Term

The “ultimate” aspect of impact refers to the fact that impact is not about immediate outputs or outcomes.

Impact is the long-term consequence and systemic change due to a continuous use of an organisation’s products and services.

If we take the example of a fintech solution that promotes financial literacy, transparency, or inclusive access to investing, the impact of that solution is not that people benefit from easier or faster financial transactions. Rather, it’s about creating new financial opportunities for a broader segment of the world population, potentially leading to greater economic empowerment for underserved groups – aligning with SDG 8 (Decent Work and Economic Growth) and SDG 5 (Gender Equality).

#4 The Impact is Scalable

The “large-scale” aspect of impact is critical for impact venture funds, as they seek to invest in scalable businesses that can amplify positive outcomes. Given the urgency of global challenges, there is no time or resources to spare on small-scale solutions. The geographic location of a startup or its initial focus on a specific region is irrelevant – what matters is its potential to grow and address pressing global issues efficiently.

If a product, service, or solution is sufficiently generic and easily scalable to reach a broader audience and various markets, the potential impact of that business will be appealing to impact venture funds.

#5 The Impact is Measurable

It is easy for organisations to remain vague or qualitative in their statements about impact, particularly when discussing the positive and charitable aspects of their actions.

If organisations are serious about creating change, they need to treat impact as an equal measure to profit. As Peter Drucker famously said, “If you can’t measure it, you can’t manage it”.

In the impact realm, deriving meaningful KPIs can be complex. Collaborating with an impact venture fund not only sets the expectations but also provides guidance to establish a transparent framework of KPIs to measure a business’s impact.

Ecosystm Opinion

Many believe only social businesses qualify for impact venture funding. In reality, any (tech) company solving societal or environmental issues is inherently impact-oriented. The key is awareness, measurement, and partnering with the right people.

Check out the websites and portfolios of impact venture funds – you’ll be surprised by the diverse areas and industries they support. Your startup might be the perfect match!

Singapore Fintech Festival 2024
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eBook – Australia’s Path To Data-Informed Healthcare Excellence

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Healthcare organisations manage vast amounts of data—from patient records to clinical notes. While this data has the potential to enhance care and optimise operations, fragmentation across systems limits its effectiveness.

Different providers have unique priorities: residential healthcare needs mobile access to data, while acute care hospitals focus on securing patient records. By automating repetitive tasks, staff can devote more time to improving patient outcomes.

To fully leverage healthcare data, robust management, governance, and security are essential. Modernising legacy systems and strategically adopting cloud technologies can streamline operations. Furthermore, managing the increasing number of healthcare devices requires careful planning.

Ultimately, building trust and synergy by breaking down silos, promoting data sharing, and ensuring quality and consistency is crucial for effective data use across organisations.

This eBook explores why Australian healthcare providers must prioritise their data capabilities and outlines the 5 key considerations for those seeking to build trust and data synergy.

Download ebook – Australia’s Path To Data-Informed Healthcare Excellence

eBook-Australia’s Path To Data-Informed Healthcare Excellence

(Clicking on this link will take you to the Nexon website where you can download the whitepaper)


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7 AI Myths in Financial Services

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Large organisations in the banking and financial services industry have come a long way over the past two decades in cutting costs, restructuring IT systems and redefining customer relationship management. And, as if that was not enough, they now face the challenge of having to adapt to ongoing global technological shifts or the challenge of having to “do something with AI” without being AI-ready in terms of strategy, skills and culture.  

Most organisations in the industry have started approaching AI implementation in a conventional way, based on how they have historically managed IT initiatives. Their first attempts at experimenting with AI have led to rapid conclusions forming seven common myths. However, as experience with AI grows, these myths are gradually being debunked. Let us put these myths to a reality check. 

1. We can rely solely on external tech companies

Even in a highly regulated industry like banking and financial services, internal processes and data management practices can vary significantly from one institution to another. Experience shows that while external providers – many of whom lack direct industry experience – can offer solutions tailored to the more obvious use cases and provide customisation, they fall short when it comes to identifying less apparent opportunities and driving fundamental changes in workflows. No one understands an institution’s data better than its own employees. Therefore, a key success factor in AI implementation is active internal ownership, involving employees directly rather than delegating the task entirely to external parties. While technology providers are essential partners, organisations must also cultivate their own internal understanding of AI to ensure successful implementation.

2. AI is here to be applied to single use cases  

In the early stages of experimenting with AI, many financial institutions treated it as a side project, focusing on developing minimum viable products and solving isolated problems to explore what worked and what didn’t. Given their inherently risk-averse nature, organisations often approached AI cautiously, addressing one use case at a time to avoid disrupting their broader IT landscape or core business. However, with AI’s potential for deep transformation, the financial services industry has an opportunity not only to address inefficiencies caused by manual, time-consuming tasks but also to question how data is created, captured, and used from the outset. This requires an ecosystem of visionary minds in the industry who join forces and see beyond deal generation. 

3. We can staff AI projects with our highly motivated junior employees and let our senior staff focus on what they do best – managing the business 

Financial institutions that still view AI as a side hustle, secondary to their day-to-day operations, often assign junior employees to handle AI implementation. However, this can be a mistake. AI projects involve numerous small yet critical decisions, and team members need the authority and experience to make informed judgments that align with the organisation’s goals. Also, resistance to change often comes from those who were not involved in shaping or developing the initiative. Experience shows that project teams with a balanced mix of seniority and diversity in perspectives tend to deliver the best results, ensuring both strategic insight and operational engagement. 

4. AI projects do not pay off 

Compared to conventional IT projects, the business cases for AI implementation – especially when limited to solving a few specific use cases – often do not pay off over a period of two to three years. Traditional IT projects can usually be executed with minimal involvement of subject matter experts, and their costs are easier to estimate based on reference projects. In contrast, AI projects are highly experimental, requiring multiple iterations, significant involvement from experts, and often lacking comparable reference projects. When AI solutions address only small parts of a process, the benefits may not be immediately apparent. However, if AI is viewed as part of a long-term transformational journey, gradually integrating into all areas of the organisation and unlocking new business opportunities over the next five to ten years, the true value of AI becomes clear. A conventional business case model cannot fully capture this long-term payoff. 

5. We are on track with AI if we have several initiatives ongoing 

Many financial institutions have begun their AI journey by launching multiple, often unrelated, use case-based projects. The large number of initiatives can give top management a false sense of progress, as if they are fully engaged in AI. However, investors and project teams often ask key questions: Where are these initiatives leading? How do they contribute? What is the AI vision and strategy, and how does it align with the business strategy? If these answers remain unclear, it’s difficult to claim that the organisation is truly on track with AI. To ensure that AI initiatives are truly impactful and aligned with business objectives, organisations must have a clear AI vision and strategy – and not rely on number of initiatives to measure progress.

6. AI implementation projects always exceed their deadlines 

AI solutions in the banking and financial services industry are rarely off-the-shelf products. In cases of customisation or in-house development, particularly when multiple model-building iterations and user tests are required, project delays of three to nine months can occur. This is largely because organisations want to avoid rolling out solutions that do not perform reliably. The goal is to ensure that users have a positive experience with AI and embrace the change. Over time, as an organisation becomes more familiar with AI implementation, the process will become faster. 

7. We upskill our people by giving them access to AI training  

Learning by doing has always been and will remain the most effective way to learn, especially with technology. Research has shown that 90% of knowledge acquired in training is forgotten after a week if it is not applied. For organisations, the best way to digitally upskill employees is to involve them in AI implementation projects, even if it’s just a few hours per week. To evaluate their AI readiness or engagement, organisations could develop new KPIs, such as the average number of hours an employee actively engages in AI implementation or the percentage of employees serving as subject matter experts in AI projects. 

Which of these myths have you believed, and where do you already see changes?  

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From Tradition to Innovation: Industry Transformation in India

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India is undergoing a remarkable transformation across various industries, driven by rapid technological advancements, evolving consumer preferences, and a dynamic economic landscape. From the integration of new-age technologies like GenAI to the adoption of sustainable practices, industries in India are redefining their operations and strategies to stay competitive and relevant.

Here are some organisations that are leading the way. 

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Download ‘From Tradition to Innovation: Industry Transformation in India’ as a PDF

Redefining Customer Experience in the Financial Sector

Financial inclusion. India’s largest bank, the State Bank of India, is leading financial inclusion with its YONO app, to enhance accessibility. Initial offerings include five core banking services: cash withdrawals, cash deposits, fund transfers, balance inquiries, and mini statements, with plans to include account opening and social security scheme enrollments.

Customer Experience. ICICI Bank leverages RPA to streamline repetitive tasks, enhancing customer service with its virtual assistant, iPal, for handling queries and transactions. HDFC Bank customer preference insights to offer tailored financial solutions, while Axis Bank embraces a cloud-first strategy to digitise its platform and improve customer interfaces.

Indian banks are also collaborating with fintechs to harness new technologies for better customer experiences. YES Bank has partnered with Paisabazaar to simplify loan applications, and Canara HSBC Life Insurance has teamed up with Artivatic.AI to enhance its insurance processes via an AI-driven platform.

Improving Healthcare Access

Indian healthcare organisations are harnessing technology to enhance efficiency, improve patient experiences, and enable remote care.

Apollo Hospitals has launched an automated patient monitoring system that alerts experts to health deteriorations, enabling timely interventions through remote monitoring. Manipal Hospitals’ video consultation app reduces emergency department pressure by providing medical advice, lab report access, bill payments, appointment bookings, and home healthcare requests, as well as home medication delivery and Fitbit monitoring. Omni Hospitals has also implemented AI-based telemedicine for enhanced patient engagement and remote monitoring.

The government is also driving the improvement of healthcare access. eSanjeevani is the world’s largest government-owned telemedicine system, with the capacity to handle up to a million patients a day.

Driving Retail Agility & Consumer Engagement

India’s Retail sector, the fourth largest globally, contributes over 10% of the nation’s GDP. To stay competitive and meet evolving consumer demands, Indian retailers are rapidly adopting digital technologies, from eCommerce platforms to AI.

Omnichannel Strategies. Reliance Retail integrates physical stores with digital platforms like JioMart to boost sales and customer engagement. Tata CLiQ’s “phygital” approach merges online and offline shopping for greater convenience while Shoppers Stop uses RFID and data analytics for improved in-store experiences, online shopping, and targeted marketing.

Retail AI. Flipkart’s AI-powered shopping assistant, Flippi uses ML for conversational product discovery and intuitive guidance. BigBasket employs IoT-led AI to optimise supply chain and improve product quality.

Reshaping the Automotive Landscape

Tech innovation, from AI/ML to connected vehicle technologies, is revolutionising the Automotive sector. This shift towards software-defined vehicles and predictive supply chain management underscores the industry’s commitment to efficiency, transparency, safety, and environmental sustainability.

Maruti Suzuki’s multi-pronged approach includes collaborating with over 60 startups through its MAIL program and engaging Accenture to drive tech change. Maruti has digitised 24 out of 26 customer touchpoints, tracking every interaction to enhance customer service. In the Auto OEM space, they are shifting to software-defined vehicles and operating models.

Tata Motors is leveraging cloud, AI/ML, and IoT to enhancing efficiency, improving safety, and driving sustainability across its operations. Key initiatives include connected vehicles, automated driving, dealer management, cybersecurity, electric powertrains, sustainability, and supply chain optimisation.

Streamlining India’s Logistics Sector

India’s logistics industry is on the cusp of a digital revolution as it embraces cutting-edge technologies to streamline processes and reduce environmental impact.

Automation and Predictive Analytics. Automation is transforming warehousing operations in India, with DHL India automating sortation centres to handle 6,000 shipments per hour. Predictive analytics is reshaping logistics decision-making, with Delhivery optimising delivery routes to ensure timely service.

Sustainable Practices. The logistics sector contributes one-third of global carbon emissions. To combat this, Amazon India will convert its delivery fleet to 100% EVs by 2030 to reduce emissions and fuel costs. Blue Energy Motors is also producing 10,000 heavy-duty LNG trucks annually for zero-emission logistics.

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AI-Startups-Powering-India's-Digital-Future
AI Startups: Powering India’s Digital Future

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The rapid adoption of technology in India is driving a surge in demand for AI solutions across sectors like finance, education, healthcare, and agriculture. AI is revolutionising these industries by making services more efficient, personalised, and accessible. This growing dependence on AI has created a fertile ground for innovation, propelling India’s emergence as a global hub for AI startups. With over 6,200 AI startups operating in the country, India offers a dynamic and challenging landscape for entrepreneurs seeking to make a meaningful impact.

Fuelling AI Innovation: India’s Strategic Investment

Earlier this year, the government allocated USD 1.3 billion for the India AI Mission, solidifying its commitment to AI. This comprehensive program is designed to catalyse the AI innovation ecosystem within the country. At the heart of this ecosystem’s development lies the expansion of compute infrastructure, a critical resource for AI startups. By providing access to powerful computing resources, the India AI Mission is empowering startups to scale their solutions and compete on a global level.

Beyond infrastructure, the initiative focuses on fostering collaborations between academia, industry, and startups to drive R&D. By creating a supportive environment that promotes knowledge sharing and resource accessibility, the India AI Mission aims to position India as a leader in the AI landscape.

A Spotlight on Indian Startups

Driving Industry Innovation

Healthcare. India’s vibrant AI startup ecosystem is driving innovation in healthcare, with companies leveraging AI to address critical challenges and improve patient outcomes.

  • Cancer-Focused AI Startups. Several startups are revolutionising cancer care with AI-driven innovations. Niramai, globally recognised for its innovation, uses AI and thermal imaging for early breast cancer detection, particularly effective in younger women and dense breast tissue. Onward Assist provides predictive analytics for oncology, helping oncologists manage patient data and improve the accuracy of cancer care decisions. Similarly, Atom360 focuses on oral cancer screening with an AI-powered app that offers quick, affordable access to critical information, enhancing oral healthcare in underserved areas.
  • AI-Driven Diagnostic Solutions. AI is significantly advancing diagnostics, enhancing accuracy, and reducing misdiagnosis. SigTuple develops AI-driven diagnostic solutions for medical imaging and pathology, improving accuracy and efficiency in disease detection. Endimension Technology, incubated at IIT Bombay, develops algorithms for detecting abnormalities in medical scans, aiming to reduce misdiagnosis and radiologist workload. Tricog Health delivers AI solutions for rapid heart attack diagnosis, reducing diagnosis time and improving outcomes, especially in underserved regions.

Financial Services. Fintechs have been at the forefront of AI-led innovations, offering innovative solutions for insurance, lending, and microfinance. Artivatic uses AI to transform traditional insurance systems into digital, personalised offerings, making coverage more accessible and affordable for a broader range of consumers. ZestMoney leverages AI for digital lending, providing credit to individuals without a credit history through easy EMI plans, and enhancing financial access. Meanwhile, mPokket offers instant micro-loans to students and young professionals, addressing short-term financial needs with flexible loan options and minimal documentation.

Other Industries. Beyond healthcare and financial services, AI startups are driving innovation across various industries, tackling critical challenges. Entropik uses AI to analyse human emotions and behaviour, helping businesses gain deeper insights into consumer preferences for market research and optimising user experiences. In agriculture, Intello Labs applies AI and computer vision to assess the quality of fresh produce, reducing food waste and improving supply chain efficiency. Similarly, AgNext enhances food value chains by offering AI-driven, real-time quality assessments through its SaaS platform, promoting safety and transparency in agribusiness.

Transforming Businesses

Technology for Security & Fraud. AI startups are offering innovative solutions tailored to organisations’ needs. SpoofSense combats deepfakes and identity fraud with advanced facial liveness detection, ensuring secure user verification by distinguishing between real users and spoofed images. Eagle Eye Networks provides cloud-based video surveillance solutions, using AI to offer real-time monitoring and analytics. In the e-commerce space, ThirdWatch uses AI to detect and prevent fraud in real-time by analysing user behaviour and transaction patterns, reducing financial losses for online retailers.

Tech Development. AI startups are empowering organisations to accelerate innovation and enhance productivity. Haptik helps businesses build intelligent virtual assistants, powering chatbots and voice bots across industries to improve customer engagement. DhiWise automates the development process, enabling faster app creation by converting designs into code. Additionally, Fluid AI provides advanced AI solutions like predictive analytics and natural language processing for sectors like finance, retail, and healthcare. Mihup enhances contact centre performance with its conversation intelligence platform, while Yellow.ai enables enterprises to automate customer engagement through its GenAI-powered platform, creating seamless and scalable customer service experiences.

Empowering People

AI startups are empowering individuals by providing personalised services that enhance learning, creativity, and financial management. SuperKalam and ZuAI offer students tailored learning experiences, using AI to create interactive lessons and assessments that adapt to individual learning styles, improving student engagement and outcomes. For creative professionals, Mugafi combines AI with human mentoring to assist writers in generating ideas and developing scripts, enabling them to create intellectual property with greater efficiency. Wright Research empowers individuals to make informed financial decisions through AI-powered investment advice, while Vahan simplifies job searches for blue-collar workers by using AI to match candidates with suitable employment opportunities via WhatsApp.

Promoting ESG

AI startups are driving meaningful change by optimising processes and creating economic opportunities. Ossus Biorenewables enhances biofuel production through AI, reducing waste and increasing efficiency in renewable energy generation, while Ishitva Robotic Systems promotes sustainability by automating waste sorting and recycling, contributing to a more efficient and circular economy. Karya connects rural workers with digital tasks, offering fair wages and skills development by matching them to tasks suited to their abilities using machine learning. In agriculture, KissanAI helps farmers improve crop yields and manage resources effectively through personalised, data-driven recommendations. ElasticRun improves last-mile delivery logistics in rural areas, enabling businesses to reach underserved markets.

Conclusion

Nvidia CEO Jensen Huang noted India’s potential to become the “largest exporter of AI,” signalling vast global opportunities. India’s AI startups are at the forefront of innovation but face hurdles such as fierce competition for skilled talent, navigating complex regulations, and securing funding. With strategic focus on these challenges and the backing of initiatives like Digital India and Startup India, India’s AI ecosystem can seize emerging market opportunities, accelerate tech advancements, and make a substantial impact on the global AI landscape.

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