Demo of using AI to optimize a process

- We're now going to use Microsoft Copilot to see if it can help us with the next issue. And the next issue is using AI to help optimize a process. So let's put the main part of our prompt in here. And then, I'll tell you what process we're going to look at. It's something that, in the last year, a couple of times, it's irritated me. And it's that if you get an international check and you try to pay it into a bank, it takes ages to clear. And it's ridiculous that in this era of modern technology, that it will take, I mean, even minutes to clear is ridiculous. It should be pretty instant. So let's put that in here. We shall put our problem in: international check clearance. But I'm not just saying international check clearance. I'm actually giving a little bit of information here. So some research has kind of explained what this process is like. So it says when a check's deposited for international clearing, it first goes to a depositing bank, blah blah blah, explains the process a bit. So you could just put in a process and get the AI to make assumptions, but if you already know what your process is, you're going to have to describe it to the AI so that the AI knows how to analyze it and how to optimize it. So here we go. We're going to put this in and see exactly what Copilot gives us. Now, there is a button here which says that you can get it to think deeper. And I'm not going to get it to do that. I just want to use the standard Copilot approach to doing things, the standard model. So we're not doing the think deeper button. We're just going for it. Right, so got it. Let's break this down step-by-step. Because that's what we're asking it to do. The first thing we're asking for is a table with columns that, what's that step in the process, how'd you make it more efficient, how did you use fewer resources, right? So it's broken down the steps there, seven different steps. And there you go. So step three, correspondent bank presents check to drawee bank. So you could make it more efficient by integrating direct communication channels between the banks. And you could minimize intermediary steps. So each of these in these second and third columns, each of these suggestions are things that we could think about doing as part of innovation to improve this process, to optimize the process. So that's the first thing is this table. Then here's recommended actions that it gives us. So you could adopt electronic check deposit systems, enable customers to deposit checks using mobile apps or ATMs with check scanning capabilities, digital image transfer, shift from physical transportation to secure digital transmission of check images. So some things there that don't feel as if they're that difficult to implement really. Then considerations for actions: costs, disruption, human resources. A lot of that is what we're going to find for a lot of changes. A lot of optimization and innovation within any corporate environment, these are the issues that are going to come up. How to sell idea to decision makers. (laughing) This is always an important one when you're presenting something. Highlight efficiency gains, do a cost-benefit analysis, risk mitigation, there you go, competitive advantage, success stories. So this has actually done a pretty good job and it did it really quickly. But you know, I've still got more questions. And remember that the chats, when you're having it here, it's part of a conversation. So this has actually just put questions in my head. And one question is, you know, is there a reason why banks haven't already done (laughing) this? Do they have a vested interest in the current system? Because that's quite an interesting thing. Why haven't these changes? These changes, a lot of them are relatively obvious, and they don't look as if they're massively challenging to do. So why haven't these already been done? What's the reason? So here we go. Legacy system: Many banks operate on legacy systems. Regulatory compliance: Financial institutions must comply with various regulations and standards, particularly internationally. Cost of implementation, risk management. Okay, so there you go. A vested interest. In some cases, existing processes may benefit certain stakeholders within the banking ecosystem. For example, correspondent banks might gain from the fees associated with processing international checks. So that becomes quite an interesting thing. I think when we're optimizing a process, you could optimize a process looking at the way that an industry does something. And if you optimize the process, then that can give you a competitive advantage in the marketplace. Or you could look at internal processes. So this was number three, and we are working are way up the chart. So please, stick with us as we go to number two in the next lesson.