“AI democratizes access to professional investment knowledge”

AI has already reached many areas of the financial sector. Many banks use it to automate manual, repetitive tasks and reduce costs. This ranges from automatic categorization of documents through to AI-supported credit checks. A recent KPMG study shows that 76 % of financial institutions use AI to detect fraud. This enables suspicious cases to be identified in a matter of seconds – a significant improvement compared to the manual analysis that used to take employees days. AI enables fast and precise analyses, supports investment decisions and even improves compliance. However, AI provides the facts, while humans remain responsible for the finer details. AI is not a magic wand. We are moving from a knowledge economy to a skills economy. AI can advise, but humans remain responsible for the final implementation. It’s about combining technology and human intuition – the best of both worlds, so to speak.

The possibilities are huge, especially in personalized financial advice and in the investment sector. AI enables individualized customer advice through data-based analysis and can also identify market trends in real time and automatically optimize portfolios. This opens up asset management to smaller investors as well. Sustainable investment strategies could become even more precise by integrating ESG data – an important step towards making sustainable financial products more widely accessible. The exciting thing is that AI democratizes access to professional investment knowledge.

Oh, a lot of money is being spent right now! Recent studies show that Swiss financial institutions are planning to increase their budgets for artificial intelligence in the coming ti&m Special “digital banking” 2025 15 years. Investments are focused in three main areas: infrastructure, talent and research. Some banks are setting up their own AI labs, while others are relying on partnerships with FinTechs or tech giants. It’s an AI race in which everyone wants to come out on top. One trend we are seeing is the emergence of AI competence centers. Large banks such as UBS are creating centers of excellence to pool AI expertise and make it available across organizational boundaries. Investment in data infrastructure and cloud technologies is also important. The potential of AI cannot be fully realized without a solid database.

As a digital assistant that delivers relevant information and analyses at lightning speed, AI is invaluable for consultants. On the other hand, AI tools provide customers with a personal financial coach. This will lead to a shift from an inheritance culture to an investment culture. I think the future lies in symbiosis: AI supports consultants, who in turn support customers in using AI tools. We are entering the age of the humane economy of the future. This combination of technological progress and human expertise creates real added value.

Generative AI is certainly the latest big thing in AI technology. It is getting a lot of attention and everyone wants to jump on the bandwagon. But the Swiss financial world is smart enough to know that there is more than just one big hit. In fact, the range of AI applications in automation is vast: robotic process automation (RPA) for repetitive tasks, machine learning (ML) for credit assessments, or natural language processing (NLP) for analyzing contracts and reports. One interesting development is what we at SwissCognitive call “cognitive automation”. This is about using AI not just for individual tasks, but to intelligently control entire processes. One area that immediately springs to mind is customer service: AI-powered chatbots and virtual assistants can handle simple inquiries around the clock. This takes the pressure off employees and improves customer satisfaction. Another area is document processing. AI can analyze forms, contracts and other documents very quickly and extract relevant information. This saves time and reduces errors. And let’s not forget compliance. Here, AI systems can continuously monitor transactions and identify potential breaches of regulations – a digital watchdog that never sleeps!

Oh, there are quite a few stumbling blocks on the road to AI paradise! First of all there is the availability and quality of the data. AI is like a gourmet chef – it needs the best ingredients to create a masterpiece. Without good data, you can’t get good results. Another major challenge is the shortage of AI specialists. Many companies are having trouble finding and retaining the right talent. To remain competitive, Switzerland needs to invest in education and training. Outdated IT systems can also be an obstacle. Many banks are struggling with a patchwork of legacy systems that are difficult to integrate with modern AI technology. And let’s not forget the regulatory challenges: The financial sector is highly regulated and AI systems have to meet these requirements. There is a fine line to tread here – you have to innovate without breaking the rules. And last but not least, we must not underestimate the cultural barriers. There needs to be a cultural shift and clear leadership from the top.

Start with a strategy! AI is not an end in itself, but a tool to achieve specific goals. First, identify where AI can create the greatest added value for your company. Invest in a solid database, because without it, any AI project is doomed to fail. Start small, for example with pilot projects, and learn from your first steps. It’s not just about us humans understanding the technology, but also about the technology learning to understand us. These iterative learning processes are indispensable. They create early successes and momentum for further AI initiatives. It is important to involve all stakeholders right from the start. This applies particularly to employees whose work will be changed by AI.

Switzerland has taken a cautious approach so far, and I think that’s a good thing. We don’t want to slow down innovation with too much bureaucracy. We should not forget that in Switzerland in particular, the sensitive financial and healthcare sectors are already very well regulated. In addition, our data protection law provides a solid framework for handling personal data. That’s not to say that there isn’t a need for clearer guidelines in certain areas. I think the EU approach with a risk-based model could serve as a blueprint. What is most important is to have clear rules for the transparency and explainability of AI. Especially when it comes to credit decisions or investment advice, it needs to be clear how an AI has arrived at its results.

AI has the potential to fundamentally change the world of finance, and Switzerland is in an excellent position to play a leading role. If business, politics and science pull together, Switzerland can shine worldwide as the AI boutique of the financial industry. Initiatives like our Industrial Center of Excellence for AI (ICE AI), which bring industrial companies together to compete in the global cut-throat market, are crucial. What we need is a revival of the Swiss financial center, which, through the targeted use of artificial and emotional intelligence, delivers the highest quality worldwide and puts personal customer contact at the center of its operations. If we succeed in this, the Swiss financial center will be a pioneer in the golden age of the humane economy of the future.