Despite Regulatory Constraints, BFSI Centres are excited for AI-centric operations
Global Capability Centres (GCCs) in the banking, financial services, and insurance (BFSI) sector are strongly backing generative artificial intelligence (Gen AI) despite regulatory challenges
At the Nasscom GCC conclave in Bengaluru on May 30, industry leaders likened Gen AI to the “internet equivalent of our times” and the “new keyboard.” Sunil Gopinath, CEO of Rakuten India, emphasized the significant opportunity Gen AI presents, even within the heavily regulated BFSI sector. GCCs, as offshore units, have a comprehensive understanding of regulations across different geographies, enabling them to design geographically compliant solutions. The bullish sentiment toward Gen AI is highlighted by the rapid adoption of Proof of Concepts (PoCs) by GCCs in India, outpacing traditional enterprises. Gunjan Samtani of Goldman Sachs Services India noted that conversational AI, enabled by founders who made it freely available, is becoming as fundamental as the keyboard. Goldman Sachs’ India unit is the firm’s second-largest globally, underscoring India’s importance in its operations.
Looking ahead, Samtani suggested that Small Language Models (SLMs) might be more practical for enterprises, given their lower computing costs compared to Large Language Models (LLMs). Praveen Kumar, CEO of Barclays Global Service Centre, highlighted the significant investment required for computing power and the necessity of stringent data protection measures due to regulatory scrutiny. A report from Nasscom and KPMG India showcased a GCC’s real-time use of data to conduct health check-ins for over 33,000 staff members and vendors within ten days. Broadridge Financial Solution, handling nearly $1 trillion in daily transactions, also expressed cautious optimism about Gen AI. However, opinions on the immediate implementation of Gen AI PoCs are divided. Sandeep Dutta from Accenture pointed out that while some CEOs are eager to implement Gen AI, others are hesitant, prioritizing a thorough understanding of its ethical and responsible use before scaling it within their organizations.
