The Great “X-factor” of AI
Artificial Intelligence is still in its infancy. As experts note, there’s a dearth of roughly 4,000 true experts nationwide on AI and the majority work at Google, Facebook, Amazon, and Apple—with the margin being lured into Goldman or Quant Funds. Even more insightful is recent news that Microsoft is significantly cutting sales people in favor of “developer activists.” Could this mean AI is closer than we think? One thing we do know is that AI improves results by applying methods derived from aspects of Human Intelligence at a beyond human scale.
So, while there’s a growing “alt-data” movement in the FinTech world, very few retail firms have tapped into the potential to make both the consumers and their own bottom lines stronger. And if history is any indicator, waiting for the Big Four to define the space will only mean you’ve missed the boat by the time it happens. It’s important to get off the sidelines, onto the field and join the team.
Future’s So Bright
AI Start-ups saw record funding last year. While it would be beyond us to predict the future of how AI is going to unbundle investment firms to unleash the power of their products and features, it’s the investment firms who have the customer data, relationships, and future retirement in the palm of their hands. And it’s those firms that can capitalize the most on reframing the customer connection and using AI data to have a better understanding of their needs. FinTech companies need to use these assets to partner with the Big Four and create partnerships that marry these two.
Starting Point Tips
- If privacy, compliance or security (PCS) are concerns, address these items by partnering with approved vendors and make these “qualifying criteria” for partnership.
- Inform the Big Four that after PCS, your goal is to grow your customer relationship, resulting in more money for both your customer and your company.
- Identify key champions at the Big Four who can help you to shift your advertising budget into a transactional budget that’s measured on engagement on these platforms.
The Future Waits for No One
The question is not if but:
- How fast these “unbundlings” will come
- Who’s best prepared to benefit from these events
- Who will fail in the process
Where will your organization land?
Watch later this week for our Year in Review and next week for our Year Ahead.