The Best Strategy for Delivering AI in Banking: In-House Development or Outsourcing?
As the banking industry embraces the transformative power of AI, many organizations dive into building their own AI solutions without clear business goals. This often leads to siloed and ineffective AI solutions. In fact, half of businesses implement AI in silos, resulting in limited business impact. In addition, banks often fail to check out other delivery options like off-the-shelf solutions or partnerships.
Choosing between In-House Development or Outsourcing Options
Developing AI capabilities in-house provides banks with direct control over the development process. It enables banks to retain intellectual property and better understand the AI models implemented. But building an in-house AI team requires significant investments in talent acquisition, infrastructure, and ongoing training.
Bigger banks can afford to recruit top talent and make expensive investments in infrastructure to sustain long-term growth. This is where the smaller banks face the challenge of adopting AI as they try to deal with a shortage of talent and the speed with which the industry transforms.
Outsourcing AI initiatives to a strategic partner offers unique benefits. Collaborating with an experienced AI provider brings specialized expertise, access to advanced technologies, and a proven track record in implementing successful AI projects. By partnering with an external entity, banks can leverage the partner’s existing infrastructure and talent pool, saving time and resources.
How Can a Partner Help Minimize Risk and Deliver Value from Your AI Projects?
Expertise and experience
Strategic partners in AI bring a wealth of expertise and industry knowledge. They possess deep insights into the intricacies of AI algorithms, data management, industry best practices, and model deployment. Leveraging their experience can help banks avoid common pitfalls and navigate the complexities of AI implementation.
Partnering with an AI expert can accelerate the development and deployment of AI projects. Partners possess ready-to-use AI platforms, tools and pre-built models that can be customized to meet specific banking needs. This accelerates the process of AI deployment, allowing the bank to realize value faster.
Data and Model Governance
AI partners can ensure data is managed securely, comply with privacy regulations, and adhere to ethical guidelines. Additionally, they can guide model validation, monitoring, and maintenance to ensure ongoing accuracy and reliability.
Scalability and flexibility
A partner can help design AI solutions that are scalable and flexible, allowing the bank to adapt to changing business requirements and increasing data volumes. This flexibility enables banks to seize opportunities quickly and efficiently without the burden of maintaining a large in-house team.
Partnering with an AI provider can help mitigate the risks associated with data security, privacy, and regulatory compliance. Established partners have robust security protocols and compliance frameworks, ensuring that sensitive customer information is protected and legal requirements are met.
Pegasus Knowledge Solutions helps our customers meet these challenges. We help banks modernize and grow in this competitive environment. PKSI’s team helps create value from your data and deliver insights that can drive operational benefits.
Founded in 1997, Pegasus Knowledge Solutions, Inc. (PKSI) is an independent, advanced analytic software and services organization that partners with industry-leading providers to help customers create value from their data, bringing a range of talents, including data integration and preparation, big data environments, data mining, predictive analytics, machine learning, and text mining, as well as dashboarding and visualization. PKSI is focused on quality, speed of execution, value, and above all, customer satisfaction. Our global solution delivery centers are ISO 9001-2008 and ISMS 27001-2013 Certified.
Posted on June-13-2021