Read the original full report from ICBA here.
Here is a brief summary of the article:
- AI is any process that allows computers to simulate human intelligence by mimicking learned behavior.
- Machine learning is a technology that enables AI to create algorithms and learn from data without being explicitly programmed.
- AI can process large amounts of data and identify non-obvious correlations, leading to more accurate loan underwriting and the ability to reach underserved borrowers.
- Potential use cases for AI in community banks include using chatbots for customer support, monitoring transactions for suspicious activity, and underwriting loans.
- AI can reduce operational costs and free up staff resources, allowing banks to focus on direct customer interaction.
- AI has limitations in providing adequate responses to complex customer inquiries, which could lead to frustration.
- It is too early to predict the full impact of AI on the banking industry, as it is a relatively new technology.
- AI is not a replacement for local knowledge and personal relationships, which are key differentiators for community banks.
