Lenders raise AI game with in-house talent, outside help

Artificial intelligence (AI) that tiptoed into banking channels with chatbots is about to make bigger strides, as India's leading banks and non-bank financiers look to embrace the technology to improve customer service, cybersecurity and asset quality.

- Shayan Ghosh & Shouvik Das

Artificial intelligence (AI) that tiptoed into banking channels with chatbots is about to make bigger strides, as India's leading banks and non-bank financiers look to embrace the technology to improve customer service, cybersecurity and asset quality.

State Bank of India, Bank of Baroda, HDFC Bank, Axis Bank and Poonawalla Fincorp are among lenders developing specific use cases through a mix of external experts and internal teams as they work to adopt AI to enhance business.

India's largest lender SBI is scouting for an intellectual property rights firm to secure patents for innovations in AI and machine learning by its analytics department. Peer BoB is also seeking external experts to generate use cases for AI.

SBI wants the selected firm to evaluate its AI/ML (artificial intelligence/machine learning) model against the criteria for getting patents registered. The firm must check if the model introduces new features or processes not found earlier; and also determine if the model provides a "non-obvious improvement or solution to a technical problem." A bank document on 21 December seeking bids said the firm must also check the model's practical applications and usefulness.