Eric Morrow on how banks are using AI

On this week’s episode of Free Lunch, we sat down with Eric Morrow, managing director of BMO's enterprise data science and AI group, to discuss the use cases of AI in banking.

How are the Big Five banks currently using generative AI? 

“Banks, like any large organization, want to drive revenue, reduce costs, create efficiency, and enhance the customer experience. They also want to mitigate risk. AI models have been used in all of those dimensions. But with generative AI, we’re more in a test-and-learn state.”

How do customers knowingly or unknowingly interact with AI?

“Within our mobile app, there are insights created by AI. One example is a tool that predicts if a balance is approaching zero and can notify a customer. Another example is using AI to verify customer consent when they call in to ask for a new product or a credit limit increase.” 

What are opportunities that might be unlocked by AI in banking?

“One example is better knowledge management. The summarization of documents and complex processes is a piece of that, which is something large language models are really good at. At some point, I can imagine content creation, but that's farther down the line.”

How will AI change the banking experience over the next three to five years?

”There are internal use cases to break down silos to drive efficiency and share knowledge in a better way inside the organization. Down the line, when we're mature enough to have direct customer interactions, the opportunity there is hyper-personalized responses.”

This interview has been edited for clarity and length. Listen to the full conversation here.