Harvard Business School examines DBS' AI strategy and implementation in its first case study focusing on AI in an Asian bank
Rhea-AI Summary
Harvard Business School (HBS) has published a case study on DBS' Artificial Intelligence (AI) strategy, marking the first AI-focused study on an Asian bank. Authored by Professor Feng Zhu, the case examines DBS' AI implementation since 2014 and its approach to Generative AI. DBS has integrated AI across its operations, with over 800 AI models across 350 use cases, expecting an economic impact exceeding SGD 1 billion in 2025.
The study highlights DBS' use of AI to enhance customer experience, boost employee productivity, and create personalized services. In 2023, DBS ranked #1 for AI Strategy Leadership in the Global Evident AI Index and #10 overall, being the only Asian bank in the Top 10. The case will be taught in HBS MBA programs and executive education courses on AI and digital transformation.
Positive
- DBS has implemented over 800 AI models across 350 use cases
- Expected economic impact of AI to exceed SGD 1 billion in 2025
- Ranked #1 for AI Strategy Leadership in the Global Evident AI Index
- Only Asian bank in the Top 10 of the Global Evident AI Index
- Received Celent's Global Model Bank Award for AI Industrialisation in 2024
Negative
- None.
Insights
DBS's AI strategy appears to be yielding significant financial benefits. The bank projects an economic impact exceeding
DBS's approach to AI industrialization is noteworthy. By embedding AI across various business functions, from customer experience to employee productivity, they're creating a holistic AI ecosystem. The mention of hyperpersonalized nudges for customers and AI-driven insights for relationship managers indicates advanced machine learning applications. The bank's readiness for Generative AI, built on their existing AI infrastructure, positions them well for future innovations. However, the challenge lies in maintaining this edge as AI technologies rapidly evolve. Investors should watch for DBS's ability to stay ahead of the curve, particularly in areas like AI governance and risk management, which will be important as AI becomes more prevalent in financial services.
DBS's top ranking in AI Strategy Leadership in the Global Evident AI Index and its position as the only Asian bank in the Top 10 underscores its leadership in AI adoption within the region. This could translate to a significant competitive advantage in attracting tech-savvy customers and talent. The Harvard Business School case study further validates DBS's AI strategy, potentially enhancing its reputation among investors and industry peers. However, as AI becomes more widespread in banking, DBS will need to continually innovate to maintain this edge. Investors should monitor how DBS leverages this recognition to drive business growth and whether it translates into measurable market share gains or customer acquisition rates in the coming years.
Authored by Feng Zhu, HBS Professor of Business Administration, the case highlights the bank's use of AI and takeaways for companies navigating technological change
SINGAPORE, Sept. 16, 2024 /PRNewswire/ -- Harvard Business School (HBS) has published a case study on DBS' strategy towards Artificial Intelligence (AI), highlighting the bank's use of AI. Developed over the course of eight months, the case is the first relating to AI that HBS has done on an Asian bank, and the first for a Singaporean company.
Authored by Professor Feng Zhu, MBA Class of 1958 Professor of Business Administration at HBS and Co-Chair of the Harvard Business Analytics Program, the case maps the bank's strategy and implementation as it industrialised its use of AI since 2014 to unlock business value, as well as how DBS is now approaching Generative AI.
Professor Zhu has authored over 80 articles, cases, and notes in prestigious practitioner and academic journals, including the Harvard Business Review, American Economic Review, and Management Science. His research has also won international awards, such as the Inaugural Practical Impacts Award from the INFORMS Information Systems Society, which recognises business school academics with outstanding leadership and sustained industry impact through their research.
Professor Zhu said, "The case study on DBS illustrates how AI technologies can potentially transform traditional industries, such as financial services, while driving value creation. By integrating AI into core processes, companies can unlock new potential for customer-centricity and operational excellence."
DBS has scaled the use of AI across all parts of the bank, embedding the technology into use cases to enhance customer experience and boost employee productivity. For instance, DBS leverages AI to generate hyperpersonalised nudges to enable customers to make better investment and financial planning decisions, provide relationship managers with deeper insights to better engage their customers, and develop tailored career and upskilling roadmaps to help every employee build long-term careers with the bank.
DBS CEO, Piyush Gupta, said, "AI is shaping up to be an absolute game changer in the way we live and work. DBS has been working with AI for over a decade now, and in recent years, we've managed to industrialise the use of AI across the bank. We today deploy over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed SGD 1 billion in 2025, after sequential doubling in the last few years. More importantly, the infrastructure and governance framework we established during our AI journey have put us in good stead to unlock the potential of Generative AI while managing its emergent risks."
The case will be taught in the HBS Master of Business Administration (MBA) Program, the Senior Executive Leadership Program – China, as well as executive education courses relating to AI and digital transformation.
In 2023, DBS was ranked #1 for AI Strategy Leadership in the Global Evident AI Index, an independent benchmark which ranks 50 of the largest financial institutions in North America, Europe and the Asia-Pacific based on their approach towards AI readiness. Overall, DBS ranked #10, and was the only Asian bank to be in the Index's Top 10. In 2024, Celent, a leading global research firm focused on technology for financial institutions, recognised DBS with a Global Model Bank Award for AI Industrialisation.
The case study can be accessed at: https://www.hbs.edu/faculty/Pages/item.aspx?num=66332
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named "World's Best Bank" by Global Finance, "World's Best Bank" by Euromoney and "Global Bank of the Year" by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named "World's Best Digital Bank" by Euromoney and the world's "Most Innovative in Digital Banking" by The Banker. In addition, DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
FAQ
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