Ally Financial Launches Proprietary AI Platform

Ally Financial has launched an artificial intelligence (AI) platform aimed at improving its internal processes and enhancing its banking services.

The cloud-based platform, Ally.ai, combines traditional AI functionalities with generative AI tools, emphasizing human intervention, data security, and ethical considerations crucial to the financial services sector.

Ally CEO Jeff Brown highlighted the potential of generative AI in revolutionizing financial services, emphasizing responsible exploration and a commitment to core principles. Ally.ai enables the seamless integration of various AI capabilities into enterprise-scale operations, fostering innovation in digital banking.

Sathish Muthukrishnan, the company’s chief information, data and digital officer, added: “As part of our long-term ‘One Ally’ technology strategy, we have been advancing our data ecosystem end-to-end and using deterministic AI models and frameworks for many years.

“The launch of the Ally.ai platform is the next evolution framing how we power deeper and more meaningful digital experiences while also unleashing productivity and new efficiencies. We’re being thoughtful about where and when to leverage its capabilities.”

The initiative is focused on three core principles, according to an Ally statement: improving productivity and optimizing internal processes; incorporating human oversight and controls to ensure responsible AI use; and safeguarding personal information.

The platform is housed on a secure cloud infrastructure with a private network to enhance security. A robust governance structure is also in place, encompassing policies, processes, ethical guidelines, and an AI Working Group consisting of professionals from various financial service fields.

Ally.ai was launched in June 2023 with a pilot program for Ally’s Customer Care and Experience team, utilizing generative AI to transcribe and summarize customer service phone calls in real-time. The results were promising, Ally said, with approximately 82% of summaries requiring no human modification.

Several major US and international banks are known to be exploring the potential of AI technology, including JP Morgan Chase, Morgan Stanley, ING, Deutsche Bank and Citigroup.

In July, Truist announced a partnership with technology giant IBM to explore the potential applications of quantum computing to its consumer banking functions.

As generative AI continues to evolve, Ally said it would remain agile in exploring its potential benefits and integrating the technology responsibly into its business operations. The company is actively planning the deployment of additional generative AI use cases.

The regulation of such technology is an important but sensitive issue for banks. The American Bankers Association has previously warned that regulation should not stifle innovation or ongoing operations for banks already using AI.