ChatGPT and banks in Luxembourg: an opportunity

A survey conducted among members of the ABBL reveals that 76% of respondents see tools like ChatGPT as an opportunity for their organizations.
Indeed, a significant proportion of participants expressed intentions to incorporate ChatGPT or other AI-driven chatbots into their operations for particular purposes (57%). Notably, this statistic becomes even more remarkable when examining credit institutions, as a staggering 88% of them have plans to implement such technologies. This indicates a high level of confidence in generative AI technology and suggests accelerated adoption in the coming years.
The survey identifies various opportunities for banks to enhance customer services using ChatGPT, including personalized banking experiences through customer analytics, investment advice based on new data sources, and 24/7 customer service chatbots. ChatGPT can also aid in fraud detection and support the Tech team, addressing compliance and IT resource limitations.
However, limitations exist. ChatGPT may produce inaccurate or invented answers, and its distance from the core business raises concerns about training future experts. Additionally, the model cannot process confidential data due to privacy regulations like GDPR.
Regarding staff usage, 51% of respondents allow free use of ChatGPT, while 24% permit partial use, and 25% block access entirely. Among banks, 41% allow free use, 19% partial use, and 38% block the tool. Clarity from data protection and financial services authorities is needed to encourage credit institutions to experiment more with generative AI.
Senior management familiarity with ChatGPT is crucial, with only 7% being very familiar, 53% somewhat familiar, and 40% not familiar at all. Internal education and training are necessary to ensure employees and executives understand the opportunities and risks associated with ChatGPT.
Obstacles to effective implementation include the lack of necessary data and infrastructure in many banks. Only 6% of surveyed credit institutions have all the needed resources.
As a reminder, the European Commission has proposed regulations, such as the AI Act, to establish trustworthy AI usage rules. In Luxembourg, the CSSF has published a White Paper on Artificial Intelligence in the financial sector and conducted a joint review with the Central Bank of Luxembourg.
#### Infographic: ChatGPT and banks in Luxembourg