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In mid-2000s, when Cloud Computing was being introduced to the market, majority of the firms felt threatened and backed off from the wave. These firms which were persistent to move their data and applications to the cloud saw transformational progress in their operations and gained massive agility to scale. Rest are still trying to catch up! With Artificial Intelligence (AI) being the new buzzword, a Mckinsey Global Institute research discovered that 45% of jobs in future can be automated by technology existing today, and machine learning can support 80% of those activities. Thus, AI has a massive potential in store and companies across various industries have captured only 20% of that potential.

The idea of “thinking machines” has nevertheless excited many experts since a long time. Existing computers at work may not be so self aware yet, but AI is poised to transform many functions of work space. Janelle Shane, a neural network scientist decided to feed a large database of recipes to a open-source neural network (AI) to gauge what kinds of meals it shall come up with. Funnily enough, the bot came up with extremely weird recipes like – Chocolate Pickle Sauce, Whole Chicken Cookies, Crockpot Cold water, Beasy Mist and Completely Meat Circle. As a result of thisstudy, those who are worried about AI taking over humans, can feel free to breathe a sigh of relief!

Yet, we cannot discount the fact that AI is already proving to be an excellent tool of automation thus reducing company costs. Recently a Japanese company, laid off more than 30 employees to automate one of its insurance procedure.

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As per a recent survey published by National Business Research Institute, key findings were as follows :

  • 38% of organisations are currently using AI technology and 62% shall be using it by 2018
  • To automate manual tasks, 26% are using AI technology which is up from 15% in 2015. In addition, the institute believes this to be the most important benefit of AI.
  • Many enterprises have not adopted AI yet because of lack of clarity of its value delivery
  • 25% use voice recognition and response mechanism
  • 65% of innovative organisations have implemented AI in their strategy in order to improve and catch up on the missed opportunities
  • 58% of the organisations are using predictive analysis everyday

We can spot many entities offering automated platforms or solutions to make organizational tasks easy and streamlines. One such area is compliance! Platforms which support fraud detection, AML compliance, KYC norms, etc are already famous in the market. These entities enable the human resource of an organization to utilise their skills on the core activities of the business by letting technology to do the grunt work of compliance. This effectively automates all the repeatable and mundane procedures which currently require a lot of human labour with cutting-edge technology.

The Automation Procedure

KPMG has a prescribed 4 step procedure to overcome organisation’s fear of adopting automation in procedures :

Analyse culture of the company in technology adoption:
Is your organization risk-averse or a technology follower? Depending on the nature of the company, one can adopt automation in business processes

Centre of Excellence to implement automation:
A Centre of Excellence (COE) shall be a separate team which shall be formed for planning and  implementing new technologies in the organization. They shall be responsible for the research on cost of implementation and the profitability derived from adoption of that technology.

Identify small targets for automation process:
Organisations should prioritize those functional areas which can reap maximum benefits from automation. Compliance is one function which involves a lot of paperwork (High-volume and high- transactions). It shall gain the most from adapting to new technology.

Continuous assessment of benefits and prioritization:
Individuals should train all units of the organization to identify projects which can be automated. Also, the COE should always evaluate existing automated projects to assess the profitability periodically.

AI

In terms of compliance, the biggest challenge for using AI as a tool is the quality. AI has so far proven to be good on the quantitative aspect. Therefore humans shall venture in and meet this challenge by integrating their skill set with automation provided by AI. Thus, how much value we can extract from is up to us!

Proliferation of AI solutions is the future of computing. Also, large data availability and infusion of newer technology in business support the development of AI. AI shall definitely augment professionals in meeting compliance formalities. The challenge lies in carefully implementing these solutions without ignoring risks that comes with it to effectively deliver best value!

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