Advanced analytics help businesses improve their operations by increasing task automation, reducing human error, and more importantly, enhancing the ability to analyse and interpret vast amounts of data. Research published in Experian’s 2022 Business and Consumer Insight Report found that 59% of Australian and New Zealand companies surveyed believe that AI and ML are already radically transforming the way they do business.
Improved business performance translates as the ability to drastically improve the accuracy of models and deliver a more convenient and personalised customer experience, which is of paramount importance in an increasingly digital world.
The challenges of advanced analytics
Building the expertise, knowledge and infrastructure necessary to reap the benefits of advanced analytics can pose problems for many businesses. The increased IT complexity required to manage AI and ML was pinpointed as the biggest challenge by 47% of Australian and New Zealand businesses surveyed in Experian’s latest report.
Another key challenge businesses are facing is integration. While AI and ML can support businesses in finding new solutions to problems, integrating them into pre-existing systems is causing headaches for some. Embedding ML requires scalable computing power and having sufficient infrastructure to enable it.
Overcoming the challenges
How can Financial Services and Telco providers overcome the challenges of AI and ML to maximise their benefits? Implementing the three tips below is a good place to start for businesses looking to harness the power of advanced analytics.
Upskilling teams on the multiple facets of advanced analytics is crucial. By upskilling their teams in AI and ML, businesses can build an analytics team that can maximise the use of advanced analytics to improve operational performance. At the moment, the gap in IT expertise is currently one of the main impediments to a wider and more effective adoption of these cutting-edge technologies.
Training workers in AI and ML is not a one-day activity but a long-lasting investment, as advanced analytics is evolving at a relentless pace, with new regulation being implemented to bring governance to its use. This means that companies need to provide continuous training, empowering employees to keep up with the latest advancements in the sector.
Second, businesses need to be smart about where to drive investment. As mentioned above, scalable computing power greatly contributes to the effective functioning of ML and should be prioritised.
Experian’s report reveals that Financial Services and Telco providers recognise the importance of this factor – 83% of the Australian and New Zealand companies surveyed that have already invested in cloud-based software applications, stated that access to more computing power was a major reason for deciding to make such investments.
Finally, the easiest way for companies to take concrete steps towards a better implementation of advanced analytics is by establishing partnerships with organisations that can provide expertise in AI and ML – both the technology and the regulatory requirements. It can be daunting for any business to master every aspect of advanced analytics. Forging the right partnership can help them find direction in this broad and complex area, complimenting and supporting existing analytics teams.
The promise of a new world of opportunities
Overcoming the challenges of advanced analytics will require patience and commitment from Financial Services and Telco providers. By leveraging the opportunities that AI and ML uncover, they can transform the way they do business and significantly enhance their performance.
For instance, advanced analytics enables businesses to turn large volumes of data into actionable insights. This, in turn, will help them achieve faster time to market for the testing and deployment of new credit risk and forecasting models.
Businesses that can unleash the full power of advanced analytics will be best placed to reap the rewards.
For more insight into the opportunities and challenges involved with AI/ML, view the interactive summary and download Experian’s latest report.
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