TACOMA, Wash.–Artificial intelligence poses some threats, as any technology does, but it really holds much more promise for both credit unions and humanity, according to one person.
Shahar Ziv, director of global corporate strategy with PayPal and a board member at Harvard University Employees Credit Union, told the Northwest Credit Union Association’s MAXX Conference to think of AI much like a piece of cutlery.
More specifically, he recalled the “great scandal” of the year 1004, when the niece of the emperor of Byzantine Empire used a fork to eat her food at her wedding dinner. Up until that point, the custom was to eat food with a knife and then use one’s fingers to put food in the mouth.
“Her actions were condemned swiftly and broadly, including by the church,” said Ziv. “I would argue that the evolution of the fork, from a heretic tool to a commonplace technology, is a parable around technology. Technology often begins with few, but over time we embrace it.”
(In this case, it was another 500 years before the fork became more commonly used.)
Ziv told the meeting there are “endless possibilities” for AI.
“But for credit unions, I would argue you need to be very, very focused,” he said. “It’s really about focusing in on how can we enhance our members’ financial lives. AI allows you to deliver exceptional experience to your members. It removes friction from annoying processes. It allows you to deliver engagement. And you can plow those savings back into enhancing that experience.”
Five Areas of Focus
Ziv forecast there will be a trillion dollars in savings at financial institutions as a result of using AI. For credit unions, he said it will be specifically effective when applied to five areas:
- Backoffice expense reduction
- Cybersecurity
- Fraud detection
- Member support
- Advanced segmentation to personalize the experience as an individual, not an algorithm
“At the end of the day you need to make sure what you use AI for ties into your mission and vision and it ties into your core values,” Ziv advised. “The world is moving from products to solutions. People want specific solutions for their needs. AI helps you meet specific needs and solve the job they are trying to solve for. AI is a way for you to humanize the digital experience in a human way.”