AI and Microsoft Copilot will Revolutionize Financial Services in the Future

Artificial intelligence (AI) is being used by financial services firms (FSI) to improve operations and boost worker productivity. While FSI firms’ use of AI is an exciting new trend, innovation requires robust governance and a trust-based foundation.

With special security and regulatory challenges, Financial services firms (FSIs) handle sensitive financial data and personal information. The responsible and secure use of AI to empower staff members while protecting client data is how business leaders should get ready for the future.

Using AI to boost employee productivity

The 2024 Work Trend Index Annual Report reveals that 75% of knowledge workers are already utilizing AI, indicating that the revolution in AI is well underway. Moreover, the trend is quickening: in the last six months, almost half of those who embraced AI did so. Employees who use AI report increased creativity, increased focus, and time savings. The top 5% of teams who used Copilot for Microsoft 365 to record meetings were able to save eight hours in just one month, which equates to a full workday that could be used for other projects.

However, because FSI organizations have particular security and regulatory requirements, they must carefully consider how they will use AI. “Without the right guardrails, processes, and policies, unmanaged AI use can present inherent risks and challenges that cannot be overlooked, especially in an area like financial services, where regulatory compliance and corporate governance are paramount,” says Dan Nadir, Chief Product Officer of Theta Lake.

Theta Lake, a Microsoft partner, is a compliance and security firm that gives companies the means to safely increase employee productivity through artificial intelligence. To assist in identifying potential compliance risks across all content, it actively monitors all created content, including Copilot creations. Companies are detecting sensitive data more accurately and quickly than they could by hand thanks to Theta Lake’s AI-powered financial services solutions.

Using AI tools to increase retention

Giving employees access to AI can boost productivity, but it can also increase talent retention. If professionals are dissatisfied with the resources provided to them or the rate of innovation, they will not be motivated to stay in their current positions. However, for FSI companies that rely on reliable, secure solutions, the rapid advancement of technology can present difficulties.

For FSI business leaders to close the skills gap, hold on to exceptional employees, and strengthen interpersonal relationships, new technologies are essential. Beyond just streamlining procedures and staffing roles, they also require an inventive mentality.

Customers can improve analytics and decision-making by using Microsoft Copilot Studio, thanks to the partnership between Microsoft and business transformation consultant HSO. HSO employs a prescriptive data governance methodology through its Copilot Studio proof-of-concept program to showcase secure and safe Copilot deployments. Customers don’t have to worry about building their own security infrastructure because HSO has built-in guardrails. They can use Copilot.

“Microsoft Copilot Studio offers unprecedented potential, but navigating security concerns is paramount. By partnering with HSO’s experts and following best practices, organizations can harness the full power of AI while safeguarding their data and ensuring regulatory compliance,” says Tom Berger, Vice President & Industry Director of Financial Services at HSO.

Responsible AI implementation to unlock the future of work

Though any change can meet resistance, the benefits of AI for FSI firms are evident in terms of productivity, analytics, and employee experience. FSI companies require a culture that is open to change and encourages trust in the security of their use of AI.

Professional services firm EY works with alliance partner Microsoft to assist FSI leaders in utilizing Copilot to deploy AI for their use cases. “EY is addressing people’s concerns by focusing on governance, risk, and compliance. In collaboration with Microsoft, we have developed a comprehensive framework for responsible AI, drawing on Microsoft’s extensive experience and know-how in advanced machine learning and automation,” says Rani Bhuva, EY Americas Financial Services Responsible AI Leader. “As rapid adoption takes place across more organizations, it is crucial to take time to make sure governance practices are in place – this framework will help set up our clients for success.”

Using the Microsoft five-point blueprint, EY offers its clients a framework for responsible AI and quick risk assessment for a safe AI deployment. In one example, unstructured call center data is transformed into useful insights by a bank using Copilot. By automating manual processes, generating reports fast, and improving customer satisfaction, the bank uses AI while maintaining the security of customer data.

Financial services innovation and beyond

When FSI companies use AI, they need to think about the security ramifications. However, implementing solutions with integrated security and a network of reliable partners can help lower risk and speed up innovation. FSI companies can become leaders in AI and capitalize on its advantages while maintaining customer trust by striking a balance between innovation and strong governance.

Microsoft offers FSI companies as well as those in other industries reliable and secure AI capabilities at scale in collaboration with partners like Theta Lake, HSO, and EY.