OpenAI chatbot ChatGPT has taken the world by storm for its ability to inform and entertain everyday users, but now financial institutions are uncovering where the AI-powered technology can fit into their processes, including fraud detection and bank security.  

ChatGPT is an AI-powered chatbot that runs on a natural language processing and large coding language model called “GPT-3,” with an updated “GPT-4” expected before the end of March. Through analysis of trillions of data sets from the internet, the technology has been able to work as an instructor on financial literacy or help write email templates, per OpenAI’s website.

That technology can assist banks with identifying issues within programming language and suggesting fixes within code, according to the company.  

In fact, financial services firms’ use of the external product can help identify and correct errors to reduce the risk of a cyberattack, Shuki Licht, chief innovation officer at financial software firm Finastra, told Bank Automation News. 

“In the past, we’ve used historical data just to try to catch things that were fraud, he said. “In the last three years, AI replaced it and now we are starting to use technology like ChatGPT to prevent fraud using behavior.” 

Twenty-two percent of the 500 global financial services professionals surveyed by NVIDIA for its State of AI in Financial Services survey 2023 named fraud detection as a top use for AI technology.  

“ChatGPT is something that a top-of-house executive who may be focused on risk management can play with and really see the value that AI delivers,” Malcolm DeMayo, global vice president of the AI consulting company, told BAN. 

Increased AI investments

The financial services industry has started to invest more heavily in AI to drive revenue and assist with areas such as risk management and customer experience, according to NVIDIA’s survey. Sixty-four percent of respondents said their leadership team values and believes in AI, and 58% of those polled said AI was important to their company’s future success. 

AI investments extend past impressively trained chatbots as well, with banks spending resources on enhanced security measures such as biometric security applications and the use of robotic process automation to help block malicious bots from overrunning their websites. 

The widespread use of AI in the financial services industry is a trend that will become prominent in the minds of decision-makers throughout the rest of the decade, Licht told BAN. 

“I think the next wave is AI and we’re going to be automating everything that we’re doing,” he said. “A lot of things that we’re doing today we are not going to do anymore.” 

Bank Automation Summit US 2023, March 2-3 in Charlotte, is a crucial event on automation technology in banking and will feature a fireside chat with Brinda Bhattacharjee of Goldman Sachs & Co. Register here.