India excels in Cloud, AI, and ML: Experian Study
FinTech BizNews Service
Mumbai, December 13, 2023: India demonstrates remarkable resilience in the face of a challenging global landscape, according to the World Bank. Robust domestic demand, public infrastructure investments, and the strengthening of the financial sector collectively contribute to India's performance. As a testament to this resilience, a staggering 77% of business leaders surveyed maintain a positive outlook for the upcoming year. These findings emerge from a comprehensive study conducted by Forrester Consulting, commissioned by Experian, a global information services leader. The study also explores the profound impact of AI on analytics, risk assessment, and customer experience. Notably, India demonstrates impressive AI and Machine Learning (ML), adoption rates, reaching 49% in customer service and 40% in identity verification.
The study highlights India's leadership in the EMEA and APAC regions, with 85% of surveyed Indian businesses using external cloud providers for analytics. India's adoption outpaces countries like Germany (66%), New Zealand (70%), and Spain (58%), solidifying its position as a front-runner in cloud, AI, and ML utilization.
Role of AI in mitigating top risks:
The report delves into the transformative potential of AI, the biggest risk priorities, and underscores how AI plays a pivotal role in fortifying resilience. Data privacy (59%) and cybersecurity (53%) emerge as the top risk concerns for the upcoming year, followed by ESG risk (47%) and credit risk (41%).
Effectively mitigating these risks depends on improving the predictiveness of models and unlocking value from a wide variety of data sources. In this regard, AI, particularly ML, stands out as an instrumental tool with immense potential.
Data integration and cloud investments drive AI success:
Achieving AI success requires large volumes of data and the right data infrastructure. Despite an increase in new data sources, the biggest data-related challenge (for 48% of respondents) pertains to the difficulty in effectively sharing data at a large scale while ensuring trust and security. As a result, 86% of business leaders are prioritising investments in new data sources to better understand risk and affordability.
The research shows that the biggest analytics-related challenge for nearly half of respondents (55%) is the ability to seamlessly connect different data assets in a data warehouse that can adequately support AI/ML use cases. To address this issue, 86% are prioritising investments in cloud technology for seamless data integration with 63% agreeing that externally hosted cloud services are the best way to avoid data silos and aggregate data sources.
Unlocking AI's potential: productivity and efficiency enhancements:
There are multiple ways in which AI can improve productivity, efficiency, and service delivery. Many organisations are actively exploring AI use cases, with a diverse
range of possibilities, including enhanced underwriting with ML-based models, proactive and early identification of vulnerable customers, improved fraud prevention and faster customer service. More than half (65%) of those already using AI find that their productivity gains have offset the initial cost – a clear indication of positive ROI from AI adoption.
“AI is currently leading the way in identifying innovative approaches to unlock the power of data, revolutionising business operations and elevating customer experience. As businesses engage with increasingly intricate decisions, AI plays a pivotal role in optimising the efficiency and effectiveness of business processes. Embracing the enduring role of AI becomes imperative, providing unparalleled insights for precise decision-making, particularly in critical areas such as risk management and fraud prevention. Simultaneously, it ushers in a new era of operational efficiency through automation, ultimately elevating the customer experience to new heights.” said Saikrishnan Srinivasan, Managing Director, Experian.
"AI/ML has increasingly emerged as a pivotal catalyst in combating new fraud challenges, automating credit risk processes, and leverage alternative data. AI is rapidly transitioning from a choice to a necessity, driving improved business performance and fostering inclusive financial growth," he further added.
Adding to it Malin Holmberg, CEO, EMEA & APAC, Experian, said, "While AI is driving innovation and enhancing analytical performance, it is critical to ensure this technology is used in a responsible and ethical way. It is reassuring that 61% of our respondents have a comprehensive AI risk management program in place and are actively addressing unintentional bias through fully transparent and explainable AI. Businesses that embrace this technology will find themselves at an advantage as they unlock new growth opportunities through process efficiency and greater automation,”
Methodology: Experian’s AI report is based on a survey of 889 business leaders in Financial Services and Telcos across ten countries, including India, Australia, Denmark, Germany, Italy, New Zealand, the Netherlands, South Africa, Spain, and Turkey. The research was conducted by Forrester Consulting during July 2023 to understand how organisations are using AI to enhance analytics and risk assessment, while also investigating the challenges they encounter.
About Experian: Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.
We have 22,000 people operating across 32 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. With corporate headquarters in Dublin, Ireland, we are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
