Proliferation, Regulation and Implications

This article has been written by Akanksha pursuing a Training program on Using AI for Business Growth course from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

Using AI in the onboarding process revolutionises how businesses welcome and guide users to their products or services. AI-driven onboarding doesn’t just create a smoother entry for users; it sets the stage for long-term engagement, satisfaction, and, ultimately, brand loyalty. The question arises: are we actually living in the era of artificial intelligence? Have you ever thought about how the introduction of AI will reshape the future of business, economics and lifestyle.

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Firstly, let’s check out the importance of client onboarding. For every business, we need a customer/client. Client onboarding is the set of activities and steps involved in introducing a new client to your product. It is the process of educating the client and helping them see your product’s value and how it solves their problem.

Understanding AI in client onboarding

AI is a great tool to onboard customers with a variety of use cases and needs since it can analyse data, recognise patterns, and make predictions based on past experiences without being explicitly programmed to do so. AI has the opportunity to teach customers to use a product or service by showing them how something works, rather than just doing it for them. 

Building AI into your product or service allows customers to interact with it by giving instructions or prompts in natural language and then watching how the AI solves a problem or completes a task within the product or service. The key is to have the AI show the customer what the non-natural language input is in your product and how the problem is solved, rather than just doing it for them.

The first few times, a customer will take the time to type out the instructions and see how the AI solves the problem for them. Soon enough, they’ll be able to remove the AI training wheels and save time by working directly with your UI (User Interface).

Client onboarding with the company’s products and services, can be significantly enhanced using AI technologies. Here are some key AI technologies commonly used in client onboarding:

Natural Language Processing (NLP)

Natural Language Processing (NLP) is a revolutionary field of artificial intelligence that empowers machines to comprehend and interact with human language effectively. NLP plays a pivotal role in various applications, making it indispensable for several industries:

  1. Chatbots and virtual assistants:
    • NLP allows chatbots and virtual assistants to engage in natural language conversations with users.
    • These AI-powered assistants can handle initial customer inquiries, providing real-time support and resolving common issues efficiently.
    • NLP enables them to guide clients through the onboarding process, offering personalized assistance and answering questions.
    • Chatbots can operate 24/7, ensuring customers receive prompt support whenever needed, enhancing the overall user experience.
  2. NLP algorithms for data extraction:
    • NLP algorithms can read and extract relevant information from onboarding forms and documents, automating the process of data entry.
    • These algorithms identify key data points, such as names, addresses, phone numbers, and other relevant details, ensuring accurate and consistent data capture.
    • NLP helps reduce manual data entry tasks, saving time and minimizing errors, making the onboarding process more efficient and streamlined.
  3. Sentiment analysis:
    • NLP enables businesses to analyse the sentiment of customer feedback and social media conversations.
    • By identifying positive and negative sentiments, companies can gain valuable insights into customer satisfaction, product perception, and brand reputation.
    • Sentiment analysis helps businesses identify areas for improvement and make data-driven decisions to enhance customer experiences.
  4. Machine translation:
    • NLP powers machine translation tools, enabling real-time translation of text or spoken language across different languages.
    • This technology facilitates global communication, breaking down language barriers and allowing businesses to reach a wider audience.
    • Machine translation enables companies to cater to international customers, share multilingual content, and collaborate seamlessly with diverse teams.
  5. Personalized content and recommendations:
    • NLP algorithms analyse user behaviour, preferences, and interactions to deliver personalized content and recommendations.
    • By understanding the context and intent of user queries, NLP helps provide relevant information, products, or services that align with individual interests.
    • This enhances user engagement, increases customer satisfaction, and fosters long-term loyalty.
  6. NLP-powered search engines:
    • NLP plays a crucial role in enhancing the functionality of search engines.
    • NLP algorithms process and understand the meaning behind search queries, providing more accurate and relevant results to users.
    • This technology enables search engines to comprehend the context and intent behind user searches, improving the overall search experience.

Machine Learning (ML)

Machine learning (ML) algorithms possess the remarkable ability to learn from data and make predictions or decisions without being explicitly programmed for specific tasks. This characteristic makes them a valuable tool in various industries, including the financial sector, where they play a crucial role in enhancing the onboarding process.

One significant application of ML algorithms in onboarding is fraud detection. By analysing vast amounts of data, ML models can identify suspicious activities and flag potential fraud during the onboarding process. This helps financial institutions mitigate risks associated with fraudulent applications and protect their customers from financial losses. For example, an ML algorithm might use data points such as IP address, device type, and transaction history to assess the riskiness of an onboarding application. If the algorithm detects anomalies or inconsistencies in the data, it can flag the application for further investigation, allowing financial institutions to take the necessary action.

Another application of ML algorithms in onboarding is personalised recommendations. Based on the client’s data and behaviour, ML algorithms can recommend relevant products or services to enhance their onboarding experience. This helps financial institutions tailor their offerings to individual needs and preferences, making the onboarding process more efficient and engaging for customers. For instance, an ML algorithm might analyse a client’s financial history, spending patterns, and goals to recommend a suitable investment portfolio or credit card. By providing personalised recommendations, financial institutions can increase customer satisfaction and loyalty.

The use of ML algorithms in onboarding offers numerous benefits to financial institutions and their customers. These benefits include improved fraud detection, personalised recommendations, enhanced customer experiences, and increased operational efficiency. As ML algorithms continue to advance, their impact on the onboarding process is expected to grow even further, enabling financial institutions to provide more secure, convenient, and personalised onboarding experiences to their customers.

Computer version

  • AI-driven computer vision can verify client identities by analysing documents such as passports or driver’s licences and matching them with selfies.
  • Automating the extraction of data from physical documents through OCR (Optical Character Recognition)

AI techniques for enhancing onboarding

Usually, member onboarding has been a laborious and time-consuming task, often done manually. However, with the advent of artificial intelligence (AI), there is now a promising solution to streamline the process and boost efficiency.

By leveraging AI technology, organisations can automate various onboarding tasks, allowing for a smoother and more productive transition for new hires. This not only saves time but also enhances the overall onboarding experience.

Let’s take a look at some of the techniques to leverage AI and optimise your onboarding process, leading to improved retention, increased satisfaction, and enhanced client loyalty:

  • Automated data collection and analysis.
  • Personalised onboarding journey.
  • Chatbots and virtual assistant for instant support.
  • Predictive analysis for proactive engagement.

Whether it’s interactive videos, informative articles, or personalised emails, AI can deliver the right content at the right time, enhancing the overall onboarding experience.

Best practices for AI-driven onboarding

Define clear objectives

Clearly define the objectives and desired outcomes of implementing AI-driven onboarding in your organisation. This includes identifying the specific challenges you aim to address, such as reducing time-to-productivity, improving employee engagement, or enhancing the onboarding experience.

Align AI with your onboarding process

Ensure that the AI technologies and tools you choose align with your existing onboarding process. Consider how AI can enhance and streamline different stages of onboarding, such as pre-boarding, orientation, training, and ongoing support. By integrating AI completely into your existing process, you can create a balanced and effective onboarding experience.

Personalise the onboarding journey 

Leverage AI to create personalised onboarding journeys for each new client. Use AI algorithms and machine learning to understand individual preferences, learning styles, and skill gaps, and deliver tailored content and resources. Personalisation promotes engagement, accelerates learning, and increases new client’s satisfaction.

Provide real-time support

Implement AI-powered chatbots or virtual assistants to provide real-time support throughout the onboarding process. These AI-driven tools can answer common questions, offer guidance, and provide immediate assistance. By offering instant support, you enhance the efficiency and effectiveness of onboarding while reducing the need for manual intervention.

Continuously analyse and optimise

Leverage AI to gather data and insights on the effectiveness of your onboarding programme. Analyse metrics such as time-to-productivity, client satisfaction, and retention rates to identify areas for improvement. Use these insights to make data-driven decisions and continuously optimise your onboarding process for better outcomes.

Ensure data privacy and security

When implementing AI-driven onboarding, prioritise data privacy and security. Ensure compliance with relevant data protection regulations and establish robust data management practices. Safeguard sensitive employee information and communicate transparently about data usage and security measures to build trust and confidence among the clients.

Provide training and support

Offer comprehensive training and support to Clients involved in the AI-driven onboarding process. Ensure they are well-versed in using AI tools effectively, interpreting data insights, and providing necessary guidance. Ongoing training and support empower your teams to make the most of AI technology and drive successful onboarding experiences.

Case studies

AI in Banking Services Onboarding: State Bank of India

India’s largest lender, the State Bank of India (SBI), has revolutionised the banking experience with the introduction of an AI-based chatbot named SIA. This cutting-edge chatbot is available 24/7, offering customers a convenient and efficient way to resolve queries and handle standard banking tasks.

The integration of AI technology into SIA has transformed the onboarding process, making it seamless and effortless for clients. With its advanced algorithms, SIA can understand and respond to customer queries in natural language, eliminating the need for customers to navigate complex menus or wait on hold. This personalised and conversational interface has greatly improved customer satisfaction, as they can now access banking services quickly and easily.

In addition to providing real-time assistance, SIA also serves as a valuable tool for customers to complete standard banking tasks efficiently. From checking account balances and transaction histories to initiating fund transfers and bill payments, SIA can handle a wide range of requests with accuracy and speed. This not only saves customers time but also reduces the workload of banking staff, allowing them to focus on more complex tasks that require human intervention.

As customers become increasingly comfortable with SIA, the chatbot’s capabilities continue to expand. SBI is actively working on integrating additional features and services into SIA, such as personalised financial advice, investment recommendations, and loan applications. These enhancements will further enhance SIA’s role as a comprehensive banking assistant, empowering customers to manage their finances effectively and conveniently.

The success of SIA highlights SBI’s commitment to innovation and its dedication to providing customers with exceptional banking experiences. By leveraging the power of AI, SBI has set a new standard for customer service in the Indian banking sector and beyond.

E-commerce firm

Myntra, a prominent e-commerce company, leverages the power of artificial intelligence (AI) to revolutionise the onboarding process for its customers. Recognising the time-consuming nature of predicting fashion trends, Myntra introduced an innovative AI system called “MyFashionGPT” to identify emerging looks and styles.

MyFashionGPT operates by meticulously scanning the vast digital landscape, incorporating data from fashion portals, social media platforms, and Myntra’s own customer data. This comprehensive approach enables the AI to gain deep insights into customers’ preferences and desires. By analysing search patterns and behaviours, MyFashionGPT can accurately predict what customers want, allowing Myntra to bring out new collections much faster than before.

The AI-driven approach has significantly enhanced the customer experience, making it easier for users to choose and select products that align with their unique tastes and preferences. The seamless onboarding process reduces friction and ensures that customers can effortlessly find what they’re looking for, leading to increased satisfaction and loyalty.

Furthermore, MyFashionGPT’s ability to identify emerging trends empowers Myntra to stay ahead of the curve in the fashion industry. The AI system continuously monitors fashion shows, influencer content, and street style, enabling Myntra to adapt quickly to changing tastes and preferences. This agility allows Myntra to offer customers the latest and most sought-after styles, solidifying its position as a leading e-commerce platform for fashion enthusiasts.

In summary, Myntra’s use of AI in the onboarding process not only streamlines the customer experience but also enhances the overall fashion discovery journey. By leveraging MyFashionGPT’s capabilities, Myntra has transformed the way customers interact with its platform, making it easier, faster, and more enjoyable for users to find the perfect products that reflect their unique styles.

Railways transportation

Use of the chatbot name AskDisha2.0: The chatbot offers users a range of services, like booking tickets and getting refunds and it even provides necessary information. The chatbot supports Hindi and English and is available on both the mobile app and website. It facilitates several services, like booking tickets, checking PNR status, cancelling tickets and more, by using a simple command with AskDisha 2.0. This makes it an easy way to access the IRCTC site for passengers and it saves time without any trouble.

HDFC Bank

HDFC Bank, one of India’s most prominent private banks, has embraced the power of AI-driven chatbots to revolutionise the client onboarding experience. By seamlessly integrating chatbots into its mobile banking app and website, HDFC Bank has transformed the way it interacts with customers. These intelligent chatbots offer personalised assistance, guiding clients through every step of account setup, transaction, and inquiry.

At the helm of HDFC Bank’s AI chatbot initiative stands EVA, a powerful tool designed to handle a wide spectrum of customer queries. Powered by Natural Language Processing (NLP), EVA boasts the ability to understand and respond to customers in real-time, creating a conversational and intuitive banking experience.

The impact of EVA on HDFC Bank’s customer interactions has been nothing short of remarkable. By leveraging AI’s capabilities, EVA has significantly reduced the response time for customer queries, ensuring prompt and efficient resolution of issues. Operating 24 hours a day, 7 days a week, EVA provides round-the-clock support, catering to customers’ needs whenever they may arise.

The success of EVA is evident in the impressive numbers it has achieved. Over a million customers have interacted with EVA, seeking assistance with a multitude of queries. With a staggering 99% accuracy rate, EVA has demonstrated its ability to accurately understand and respond to customer requests, offering reliable and consistent support.

HDFC Bank’s integration of AI-powered chatbots, spearheaded by EVA, has not only enhanced customers’ banking experiences but has also optimised the bank’s operational efficiency. By automating routine tasks and providing immediate assistance, chatbots have freed up valuable resources, allowing human representatives to focus on more complex customer requirements.

Overall, HDFC Bank’s adoption of AI-powered chatbots, particularly EVA, exemplifies the bank’s commitment to innovation and customer-centricity. By leveraging cutting-edge technology, HDFC Bank has created a seamless, personalised, and efficient banking experience that sets a new standard for the industry.

TATA Capital

Tata Capital, a behemoth in the financial services industry and an integral part of the esteemed TATA Group, embarked on a transformative journey to revolutionise customer engagement and streamline the onboarding process for its diverse financial products. Recognising the potential of Artificial Intelligence (AI) to enhance customer experiences, Tata Capital conceptualised and launched TIA (Tata Intelligence Agent)—an AI-powered chatbot designed to assist customers with loan applications, product inquiries, and onboarding processes.

TIA was meticulously crafted to provide a seamless conversational experience and offer contextual assistance for all customer service requests. This innovative chatbot leveraged advanced natural language processing (NLP) algorithms to understand the intent behind customer queries, enabling it to respond accurately and provide relevant information.

The implementation of TIA yielded remarkable results. It significantly reduced the time required for loan applications and approvals, providing customers with a seamless and expedited onboarding experience. TIA’s efficiency and user-friendly interface not only simplified the onboarding process but also empowered customers to complete their applications quickly and conveniently.

Furthermore, TIA handled thousands of queries daily, demonstrating its scalability and ability to manage high volumes of customer interactions. This resulted in improved customer engagement and satisfaction, as customers appreciated the personalised assistance and prompt resolution of their inquiries.

Recognising the positive impact TIA had on its customers, Tata Capital witnessed a notable increase in successful loan applications. Customers raved about the efficient and user-friendly onboarding process, leading to overwhelmingly positive customer feedback.

In summary, Tata Capital’s strategic deployment of TIA transformed the customer onboarding experience, making it seamless, efficient, and delightful. The AI-powered chatbot not only enhanced customer engagement but also played a pivotal role in driving successful loan applications and boosting overall customer satisfaction. TIA’s success underscores the tremendous potential of AI in revolutionising the financial services industry and empowering organisations to deliver exceptional customer experiences.

Conclusion

Creating a smooth client onboarding experience with AI is pivotal to enhancing customer satisfaction and loyalty, which in turn drives business growth. AI technologies, such as chatbots, machine learning algorithms, and automated workflows, streamline the onboarding process by providing personalised, efficient, and responsive service. The case studies of the State Bank of India, Myntra, the IRCTC App, HDFC Bank and Tata Capital illustrate the tangible benefits of AI in onboarding. As technology continues to evolve, the integration of AI into client onboarding will become increasingly vital for staying competitive and meeting the ever-growing expectations of clients.

References

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