Timo Ritakallio: How artificial intelligence is transforming the financial industry
Timo Ritakallio
Ever since OpenAI’s ChatGPT exploded into public view in late 2022, the possibilities of generative artificial intelligence (genAI) have captured imaginations throughout the business world. GenAI is a type of artificial intelligence that can create new content – such as text, images, music, code, or even video – based on patterns it has learned from existing data. As someone who has witnessed the transformative power of AI in the financial industry, I am excited about the potential it holds for driving efficiency and enhancing service industry like the financial industry. It is very important to understand that AI is not just a technological advancement; it’s a catalyst for change that challenges us to rethink how we operate and how we interact with our clients. I think that companies that set a people-centric talent strategy will give themselves a competitive edge as more workers and jobs are affected by the changes genAI brings.
GenAI enables personalized customer interactions through chatbots and virtual assistants, offering instant support and efficiently managing accounts. This personalization not only enhances customer satisfaction but also frees up human resources for more strategic tasks. By automating routine operations, AI reduces cost and enhances accuracy, leading to faster service delivery. At OP Financial Group we have embraced AI to accelerate our digital transformation, allowing us to meet growing expectations for speed and personalization. In June 2024, as the first bank in the Nordics, we launched a personal digital assistant ‘OP Aina’, powered by AI and proactive prompts, to support our customers 24/7. To support our employees and act as smart co-worker, we have launched the AI assistant ‘OP Maiju’ to help the staff with their daily tasks.
AI plays a crucial role in many areas of financial industry, such as risk management, fraud detection, and cyber security. For example, machine learning algorithms identify suspicious patterns in transaction data. This proactive approach to fraud prevention enhances security and reliability. Also strengthening cybersecurity through AI is essential, as AI allows for real-time monitoring and response to threats, ensuring that sensitive data remains secure. By leveraging AI, we at OP aim to improve the speed and accuracy of our financial processes, reducing false positives in fraud detection and enhancing overall security.
AI is also a transformative force in decision-making within the financial industry, particularly in areas such as credit and insurance processes. AI's ability to analyse large datasets and identify patterns allows financial institutions to make more informed and efficient decisions. By leveraging AI, financial companies can foster innovation and enhance their services, supporting their broader digital transformation goals. However, AI also presents challenges such as data privacy concerns and algorithms bias. Ensuring ethical AI use requires transparency in our decision-making processes. At OP, our commitment to responsible use of AI is reflected in our data management practices, which ensure that AI applications are developed and used responsibly. Already in 2018, we published the initial OP’s ethical principles for the use of artificial intelligence.
For finance students, understanding AI’s impact on the financial industry is crucial. As AI becomes integral to financial operations, students should focus on developing skills that complement AI technologies, such as data analysis and strategic thinking. Finance professionals must continuously adapt to new AI tools and methodologies. Embracing lifelong learning, to be curious for new things and staying informed about AI advancements will be key to maintaining competitive advantage as a professional in the financial industry.
Reflecting on the journey ahead, I am optimistic about AI's role in shaping the future of the financial industry. It offers unparalleled opportunities for growth and transformation. As we embrace these changes, fostering a culture of continuous learning and adaptability will be essential for the workforce across the sector. AI should be at the forefront of leadership discussions, ensuring that teams are equipped to utilize these tools and drive productivity gains across the organization. By doing so, we can harness AI’s full potential responsibly and effectively, ensuring that we not only keep pace with technological advancements but also lead the way in innovation.
The author is the President and Group CEO of the OP Financial Group.