Gen AI to enhance software development, Mastercard exec says
Mastercard report: Gen AI in 2024
Financial institutions are looking to generative AI for software development, chatbots and operational efficiencies, and more AI applications are expected to surface in 2024.
Gen AI for software development, for one, is expected to be “transformational” in the financial services industry, according to Mastercard’s “Generative AI: The transformation of banking” report, released Dec. 4. The report combines findings from Deloitte’s 2023 CEO Survey, Goldman Sachs, IBM, McKinsey, Finicity, Morgan Stanley, Statista and more.
Some financial institutions are ahead of the curve on developing software using gen AI: $1 billion Scotiabank and $190 billion KeyBank, for example, are exploring gen AI for coding assistance.
“Most companies in financial services rely heavily on extensive and complicated technology systems and are investing large amounts of money into them to respond to an ever-increasing set of challenges and opportunities,” Ken Moore, chief innovation officer and head of Mastercard Foundry, told Bank Automations, adding that “gen AI has the potential to significantly enhance many phases of the software development process.”
Software developers can use Gen AI:
- Draft project specifications;
- Troubleshoot software integration challenges; and
- Provide step-by-step guidance for tasks.
Gen AI for legacy systems
Generative AI can improve new processes as well as update legacy systems, Moore said.
With older systems, the technology can:
- Expedite the error-intensive work of rewriting old code;
- Explain outdated code; and
- Write, review and debug code.
Forward look
In 2024, financial institutions will continue to experiment with generative AI with proof of concepts and innovation testing, Moore said.
And operational efficiencies, knowledge bots and gen AI for software development are “laying the groundwork for what’s to come,” he added.
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