"AI is evolving rapidly and we cannot afford to lag behind." This is the message from technology service providers in the marketplace, voiced by the chair of the trade group Finance & Technology Luxembourg, Jean-François Terminaux. He describes a multi-speed financial landscape: "Some players have quickly adopted AI and started working on innovative solutions and projects. Others are more hesitant.”

Terminaux pointed out that AI offers many possibilities that can transform the financial sector, particularly in terms of automating and simplifying processes: "Technologies such as character recognition or document analysis make it possible to process and analyse large amounts of information. This can make all the difference in the financial world, where documentation represents an enormous volume."

Sovereignty and compliance

Terminaux admitted that implementing AI solutions is no walk in the park. "You can choose to develop solutions in-house, which requires significant investment in skills and hardware. Another option is to use public cloud solutions, but this poses regulatory challenges, not least because the main cloud providers are American. This raises issues of sovereignty and compliance that should not be ignored."

The challenge is therefore to strike a balance between in-house development and the use of external solutions. "We also need to consider pooling resources to reduce costs and increase efficiency. This could involve sharing technological infrastructures or data platforms." Example: anti-money laundering and know-your-customer procedures.

"This is an area where AI could revolutionise existing practices, but it requires greater collaboration between all the players," said Terminaux. "Even though there is an offer, albeit minimal, in Luxembourg, we are still lagging behind our neighbouring countries. Imagine a system where checks are carried out just once, and the results are then shared securely between the institutions concerned."

Cybersecurity and customer relations

He also cited the potential of AI in cybersecurity: "It can play a crucial role in the early detection of threats and the response to incidents. By analysing large amounts of data, AI can identify patterns and anomalies that signal suspicious activity, enabling intervention before an attack occurs.”

Another promise of AI is that it can transform customer relationships by offering much more refined and personalised analyses. "It can enable banks to better understand their customers' habits and needs and offer financial products that precisely match their expectations. This is not just limited to product suggestions, but also includes proactive and personalised financial advice based on sophisticated predictive models", said Terminaux. And he appeals to the financial community: "The resources are there, it's time to move forward!”

This article was written for the July 2024 issue of Paperjam magazine, published on 19 June. Read the original French version of this interview here.