Although it's still early, I believe I've already heard my favorite quote of the year. In a recent interview with Elon Musk, the conversation gravitated toward artificial intelligence (AI).
As they discussed disruptions that AI will bring to all levels of society — and at a faster pace than many realize — Musk calmly said, "Things are getting weird. And they're getting weird fast."
After smiling at his understated quip, the first thought in my mind was of the fears that are quickly spreading through the business world. No one wants to be standing flat-footed when industry-altering events take place.
It's my belief that banks have been unfairly criticized over the years for being slower than other industries to adopt innovative technology. From the first inklings of the internet explosion to the proliferation of personal computers to the dominance of smart phones, many pundits (and tech salespeople) have chided banks for being modern-day Luddites.
That always struck me as unjust. Most bank leaders I've known, from community banks to some of the largest banks in the country, are keenly aware of the opportunities that new technologies present.
They are also keenly aware of the challenges of change and the nature of their industry.
Not being an early adopter on the latest "game changing" tech is not a sign of timidity or denial. When you run businesses so incredibly reliant on trust and dependability, it is far more important to be right than first when introducing changes that impact both customers and employees.
Few bank leaders today are in denial that AI will soon be as commonly used in and around their businesses as the internet is today.
With that, I believe a point I have stressed for two decades is as true as ever. These tech advances are not things their teams should fear.
Should we be paying close attention to how AI is being refined? Obviously. Should we begin prudently testing applications and game planning for use in areas where it can be used safely, quickly and (of course) legally? Yes.
The central bank believes it needs authorization to issue a digital dollar, but others say the hurdles to implementation are much lower.
However, it's important to remind our teams that technology is a tool. In presentations, I often hold up my smartphone and remind folks that the device is not a bank, nor is it a "relationship." It is a tool used to communicate and interact with the institutions we choose to have banking relationships with.
Improved tools help talented people become more productive. The best pneumatic nail gun in the world will not make me a carpenter. In the right hands, however, it is a game-changer compared to the old tried-and-true hammer.
There is little doubt that certain AI tools will eventually allow our best people to be more efficient and productive than ever possible before.
But there are other ways AI will make our people more critical to banking operations than ever.
It's hard to find anyone with a smartphone who has not seen a significant increase in the number and sophistication of scams and phishing schemes. At this point, it can be argued that a criminal element is using AI technology more enthusiastically than anyone else.
For example, I've been told personal stories of AI-generated scam calls that are chilling.
A financial advisor friend spoke of a customer who mistakenly thought he was having a conversation with his son. He wasn't. Voice cloning technology is already that good and improving every day.
Heightened concerns about the volume and sophistication of fraud make physical branches and personal access to helpful bankers more important than ever to customers.
We've seen that the value customers place on physical branches remains remarkably high even as so much of their day-to-day banking is now done remotely.
They want to know that they can interact in person with real people who can address their concerns and assist them with detailed transactions, problem resolution, security breaches, etc.
Further, human oversight will remain essential to ensure that AI is consistent in the making of ethical and fair decisions. Customers will expect a balance between AI efficiency and human empathy and expertise in their dealings with their banks.
But all that said, perhaps the most important reason bankers will remain critical to their institutions is that AI will not be talking to customers within a branch, at a ballgame, in a grocery store or at a civic event. It will not be volunteering with local charities. It will not be shaking hands and making friends out in its communities. Bankers will.
Over time, technology does not tilt the playing field. It levels it. Human interaction and expertise will remain integral in building customer trust and deepening banking relationships. The banks able to attract, develop and retain great bankers will win. Always.
