Scaling Generative AI in Finance: Challenges and Insights from McKinsey’s Violet Chung

Generative artificial intelligence (Gen AI) holds immense potential to enhance staff productivity in financial institutions. However, scaling its successful deployment beyond pilot projects presents significant challenges. This was the key insight shared by Violet Chung, senior partner at McKinsey & Company, during an interview with CGTN at the SWIFT International Banker’s Operation Seminar 2024 in Beijing.

“While AI usage is prevalent in finance, Gen AI is a different story,” Chung remarked, highlighting the gap between traditional AI implementations and the transformative possibilities of Gen AI. One of the main obstacles she identified is employee resistance to adopting Gen AI technologies. “Some employees refuse to use it,” she noted, emphasizing the human factor in technological adoption.

Chung stressed the importance of top-down alignment from senior management to overcome this resistance. “Twenty different departments doing 40 different Gen AI missions is very expensive… very, very expensive,” she said, pointing out that fragmented, bottom-up initiatives often fail to scale effectively. By contrast, a unified strategic approach led by leadership can streamline efforts and resources.

Additionally, Chung highlighted the need for management to establish role models within the organization to demonstrate the benefits of Gen AI. “People have to see why doing this is good,” she explained. By showcasing success stories and tangible outcomes, organizations can foster a culture that embraces innovation and alleviate skepticism among staff.

The insights from Chung underscore the critical role of leadership and organizational culture in scaling Gen AI in finance. As financial institutions navigate the complexities of digital transformation, strategic alignment and employee engagement emerge as essential components for success.

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