Artificial Intelligence: Commerz Bank uses Generative AI to creative financial avatars
Developed in partnership with Microsoft Azure, the application leverages advanced GPT models to facilitate natural conversations with customers,
Gm Fintech Futurists —
Welcome to AI in Finance, focused on the application of artificial intelligence — LLMs, generative AI, machine learning, deep learning, and neural networks — to financial services.
Today we highlight the following:
AI Applications in Finance: Commerz Bank combines GenAI and Avatar technology in first-ever customer-facing application (link here)
CURATED UPDATES: LLMs and other Machine Models; AI Applications in Finance; Infrastructure & Middleware
For weekly deep dives on the frontier of fintech, check out our premium offering.
In Partnership
Join Fintech Meetup (March 3-6), the new BIG event with “the highest ROI” for attendees & sponsors with reasonably priced sponsorships, tickets, and rooms. Join 45,000+ double opt-in meetings, and Network with 5,000+ attendees.
👉 Get tickets Now!
AI Applications in Finance: Commerz Bank combines GenAI and Avatar technology in first-ever customer-facing application (link here)
Customer experience is a key competitive dimension for financial services companies, with 60% of banking clients in a recent survey saying that good customer experience is the most compelling reason to stay with a provider.
To that end, Commerzbank is developing Artificially Intelligent (AI) avatars to be used in client-facing customer service roles. This is an expansion of the hybrid digital service model, further pushing the emotional labor of advisors to digital interfaces instead.
Commerzbank’s AI banking avatar, developed in partnership with Microsoft Azure, leverages advanced GPT models to facilitate natural conversations with customers, an innovation that aims to make banking more accessible and personalized. In practice, we expect this to replace some portion of the industry’s customer support agents with interactive rendered video chatbots. Projects like these are possible for Microsoft, given its large investment into OpenAI and adept navigation of recent board drama.
Commerzbank is not the first to go down this path. Back in 2018, UBS adopted an AI-powered virtual rendering of its Chief Investment Officer, and KB Bank, one of the major banks in Korea, is using DeepBrain AI products AI Human & AI Kiosk to interact with customers. These efforts were made in the context of broader chatbot integration into the middle office, with companies like Kasisto supporting enterprise bank deployments.
The economic potential of AI avatars in the financial sector is large. The global digital avatar market, estimated at $14B in 2022, is forecasted to grow at a CAGR of 47% from 2023 to 2030. Another estimate suggests that the digital human (AI Avatars) market will grow from $6B in 2023 to $70B by 2032. While these numbers are still largely imaginary, we do know that the call center industry runs at $20B of revenue per year.
This growing trend of AI avatars in customer service roles is gaining traction beyond financial services. AI avatar-focused startups, such as HeyGen, are growing rapidly, from $1M annual recurring revenue in March 2023, to $18M as of this November. These avatars are being used across social media platforms, narrating videos, even in the broader context of attention economy.
The pertinent question for AI avatars in financial services is whether they will fundamentally change customer interaction, or just be a more sophisticated version of the earlier chatbots? The goal is clear — to create a competitive advantage for financial institutions to provide superior customer experience. Can AI avatars achieve that goal?
👑 Related Coverage 👑
In Partnership
Live Panel by Canopy: Personalizing Commercial Lending Products at Scale - Thu, Dec. 7th at 1pm EST. Learn from top lending operators from Flexport and Canopy about what drives predictable growth, when and how to launch a new personalized digital finance product, and some of the top challenges that come with scaling.
Curated Updates
Here are the rest of the updates hitting our radar.
Machine Models
⭐ Amazon is building a LLM to rival OpenAI and Google - AINEWS
Fueling AI Excellence: Lablab.ai’s TruEra Challenge with Google Cloud Vertex AI and TruLens - AITHORITY
Forrester Report Shows That You Need More Than an LLM to Build a GenAI Application - Enterpise AI
AI Applications in Finance
⭐ Finastra survey shows global investment in AI, embedded finance, and BaaS - Finextra
Finance & insurance jobs on front line as AI/LLM advance: UK gov’t - Intelligent Insurer
Finance leaders embrace AI and machine learning to revolutionise industry - FF News
Infrastructure & Middleware
⭐ Meta and IBM form open-source alliance to counter big AI players - Yahoo Finance
Huawei Cloud Fintech Summit unveils Pangu finance model - FinTech Magazine
Nvidia Seeks to Build Out AI Ecosystem in Tech-Hungry Japan - Yahoo Finance