Generative artificial intelligence has been all the rage with promises of improved efficiency and groundbreaking innovations. Within the banking industry, Southeast Asia could lead the GenAI race.
In 2024, one closely watched area across sectors will be the deployment of generative artificial intelligence (GenAI) and its effect on various operations.
Within banking, GenAI is estimated to create $200 billion to $340 billion in value – equivalent to 9-15 percent of current operating profits – according to a McKinsey report, with the risk and legal function expected to be the greatest beneficiary in the sector.
And by region, various signs are pointing to Southeast Asia potentially becoming a leading adopter.
Real Interest
One major indicator in the region is the real public interest expressed online, which could translate to accelerated adoption in the near future.
According to data compiled by tech blog Electronics Hub, the Philippines was the leading country worldwide in terms of GenAI interest with 5,288 monthly searches of related tools per 100,000 people. In fact, Southeast Asia was a dominant leader occupying three out of the top 10 positions. Singapore was in second place with 3,036 monthly searches per 100,000 people while Malaysia was in sixth place with 1,788 monthly searches.
«As we move into 2024, Asia Pacific – and in particular Southeast Asia – will continue to experience rapid growth and transformation, with the turbo-charged impact of generative AI in banking to play a significant role,» said Colin Kum, Mambu market sales director for APAC, in a recent report on tech trends in Asia's banking sector.
Public and Private Sector
Southeast Asia’s leadership potential is not built on interest alone. Both the public and private sectors have already been making moves to realize their AI ambitions.
In Singapore, the local government announced its goal of tripling the city-state’s AI workforce to 15,000 which includes data, machine learning scientists and engineers. According to newly appointed President Tharman Shanmugaratnam, such developments are «good for countries like Singapore because we are short of people».
The private sector has also responded with OCBC rolling out GenAI access to all of its 30,000 employees in October. This followed a six-month trial that saw improved productivity in areas like investment research reports, content translation and customer response drafts.
Intelligence Risks
GenAI developments will not come without risks. There are already spotlighted concerns about issues such as the accuracy of content generated or human accountability from unwanted outcomes. And of course, there is the age-old question about the possibility of workers being displaced by a new wave of technological changes.
«Most humans today, but in particular bankers, spend 80 percent of their time processing stuff and 20 percent of their time thinking. That’s going to inverse with AI,» said Jan Metzger, Citi’s APAC head of investment banking, during a panel at this year's Hong Kong FinTech Week.
«You’re going to spend 20 percent of your time telling the AI what to process and you’re going to spend 80 percent of your time thinking. So you have to hope that you have some smart thought because you’re going to have to compete much more with thought rather than processing.»
