Africa on the Cusp of a Technological Leap with Generative AI
As generative AI is revolutionizing financial practices worldwide, Africa is poised to make a significant technological leap. With personalized services, operational efficiency, and financial inclusion, this technology offers new perspectives for banks and insurance companies on the continent.
Leveraging Generative AI for African Finance
The question of how to harness generative AI for African finance was recently debated at the 4th edition of Digital Mornings, organized by EY Tunisia in partnership with the Tunisian-Ivorian Chamber of Commerce and Industry, under the theme "Gen AI and African Finance: Towards a New Era of Trust, Efficiency, and Inclusion." The event, held simultaneously in Tunis and Abidjan, brought together representatives from Tunisian and Ivorian financial institutions, as well as experts and specialists, to discuss a topic that continues to spark interest in the global financial sphere.
Current State of Generative AI in Finance
Skander Naija, a partner at EY-Parthenon Tunisia, presented an overview of the progress and applications of generative AI in the financial sector, particularly in banks and insurance companies. He noted that, over the past five years, financial institutions have begun to integrate traditional AI into their processes to accelerate the value chain, eliminate tasks, improve customer service, and refine segmentations. Generative AI, a more advanced technology, enables the creation of content (text, videos, presentations, etc.), which will help managers and businesses accelerate their approaches even further.
Massive Investments in Generative AI
Naija cited a study on the integration of AI by banks worldwide, which showed that:
- Over 71% of banks have already launched generative AI initiatives or capabilities.
- Nearly 90% expect significant impacts within the next two years.
- Data remains the primary obstacle, particularly in terms of quality, compliance, and personal data protection.
- More than half of the banks surveyed plan to increase their technological partnerships in the next two years to address data-related issues.
- Only 16% of initiatives have reached the production stage, indicating a significant margin for progress for banks that have not yet taken this technological turn.
Improving Financial Inclusion in Africa
Naija identified three key areas where generative AI can benefit African finance:
- Personalization of customer experience: Generative AI enables micro-segmentation of the market, allowing for tailored responses to customers. It also improves chatbots, enabling continuous and fluid interactions.
- Operational efficiency: Generative AI's synthesis capabilities will provide bank and insurance teams with complete and easily accessible references (regulations, notes, procedures, etc.), saving time. It can also automate document generation, such as credit notes.
- Financial inclusion: Generative AI can contribute to designing effective educational tools and producing content to educate and raise awareness about financial services among consumers across the continent, in various African languages, thereby improving financial inclusion in African countries.
Conclusion
Naija concluded that Africa can make a technological leap with generative AI, just as it did with mobile banking. By improving data quality, collecting information, and integrating generative AI directly, Africa can become a pioneer in this field. "Perhaps it's not necessary to go through traditional AI. We can make this technological leap and become a leader in generative AI."
