Generative AI is a rapidly emerging technology with the potential to revolutionize many industries, including finance. In Luxembourg, the University of Luxembourg's SnT Interdisciplinary Research Center through the Finnovation Hub launch a hackathon for students and young professionals to develop innovative solutions using generative AI in the financial sector.

In this interview, I exchanged with Jean Hilger, Head of Finnovation Hub, about the goals of Finnovation Hack, the potential of generative AI in finance, and the challenges and opportunities for its adoption.

KA : Jean, thank you for joining us today. Can you tell us a little bit about why the FinnovationHack was created this hackathon?

JH : FinnovationHack was created to foster innovation in the intersection of finance and technology. We believe that generative AI has the potential to revolutionize the financial sector, and we want to help students and young professionals develop innovative solutions that can make a real impact.

KA : What are some of the most exciting opportunities for generative AI to revolutionize the financial sector?

JH : Generative AI has the potential to transform many aspects of the financial sector, including:

Customer experience in banking, insurance and fund investment. This customer experience goes well beyond annoying chatbots at the bottom of a screen trained to answer three most frequent questions. We will become familiar having voice conversation with a virtual banker or insurance broker who is knowledgeable of both the complexity of his business and your personal situation. 

Generative AI largest impact will be in increasing productivity of Luxembourg’s back offices in finance. It’s essential for our financial place to embrace this technology to remain competitive.

Increasing complexity of regulations have mostly been solved by increasing workforce and cost in compliance verification.

Generative AI has the potential to become knowledgeable of complex processes and regulation, to advise on specific situations, to generate answers which are well referenced and finally speed up compliance verifications. Such use cases are already showing extraordinary results in the setup procedures of funds, the processing of claims in insurance, the training of staff on regulations and many more to come.

KA : What are some of the key challenges that need to be addressed in order to successfully implement generative AI solutions in finance?

JH : There are a number of challenges that need to be addressed in order to successfully implement generative AI solutions in finance, including:

IT Competence: Generative AI models requires skilled developers capable of adjusting the potential of general generative AI models to the context of a specific use case. IT competence in this domain is still scarce.

Business Competence: the buzz around generative AI needs to be turned from spectacular examples into useful productivity tools that integrate business processes. True business expertise in real work environment and a good understanding of governance responsibilities are key to transform generative AI from a show star into a work horse.

And of course, in similarity to all classic AI decision tools that the industry is already using. Generative AI needs to comply with trustworthiness, explainability, resist new cyber threats and conform to the democratic values that protect the rights of citizens.   

KA : What advice would you give to students participating in Finnovation Hack to help them develop innovative ideas and pitch them effectively?

JH : Here are a few tips for students participating in Finnovation Hack:

Start with a problem: The first step is to identify a problem that you want to solve. Once you have a problem, you can start to brainstorm solutions.

Do your research: It is important to do your research and understand the landscape before you start developing your solution.

Be creative: Don't be afraid to think outside the box and come up with innovative ideas.

Practice your pitch: Practice your pitch in front of a mirror or with friends and family. This will help you to feel more confident when you pitch to the judges.

KA : What are your hopes and aspirations for the future of Finnovation Hack and its role in fostering innovation in the intersection of finance and technology?

JH : We hope that Finnovation Hack will become a leading event for innovation in the intersection of finance, technology and research. We want to help students and young professionals to develop skills and knowledge they need to be successful in this field. We also believe that Finnovation Hack can play a role in shaping the future of the financial sector.

Conclusion

Finnovation Hack is a unique opportunity for students, researchers and young professionals to learn about generative AI and to develop innovative solutions that could have a real impact on the financial sector. By providing participants with the resources and guidance they need to succeed, Finnovation Hack is helping to foster innovation and shape the future of finance.