Current status and development trends of AI in the banking and finance in the world and Vietnam: Some recommendations

Abstract

Artificial Intelligence (AI) is known as a new technology with great influence in the 21st century; it can change human life like the Internet did. In banking sector, AI has been strongly applied in many processes, products... and according to McKinsey (2023), Generative AI (GenAI) can create annual added value for the global banking industry from USD 200 - 340 billion, equivalent to 9 - 15% increased profit. Financial institutions in Vietnam are also in early stage of adopting AI in the processes of customer care, credit rating, customer authentication... However, the application of AI in terms of cloud - based data warehouses and application programming interfaces (APIs) on a large scale is still in the pilot stage. Moreover, the cost of outsourcing technology services from international companies is often very high. The article tries to explore the experience of AI adoption in the global banking and finance industry and the current status of AI application in the Vietnam banking and finance sector, thereby providing some suggestions and recommendations.