Business

How to embrace data and unlock technology’s true potential

Published

2 years ago

March 30, 2022

Jonathan Westley, Chief Data Officer, Experian UK&I

“We have entered an exponential age”, as writer and technologist Azeem Azhar said. Ours is the first era in human history in which technology is constantly accelerating, while society and businesses struggle to keep pace.

The digital world is fast becoming a cornerstone of our global society. Almost everything we do – whether that’s work, socialising, or learning – is being reframed by how we embrace technology. I strongly believe developments in Machine Learning (ML) and Artificial Intelligence (AI) mean we are on the brink of a transformative change in how our society functions, similar, or perhaps greater, in scale to the introduction of electricity. However, if we are to unlock the true potential of this digital future, we must change how we think about the fundamental building blocks of technology: data.

It is no overstatement to say that data has the capacity to transform society by distributing decision-making throughout every part of an organisation. But the positive potential of data for consumer experiences and the greater good often falls through the gaps. Many believe it is a technical, specialist subject that requires years of study to understand. At worst, it can make people think about cybercrime and big tech corporations harvesting personal data through opaque means. This in turn discourages individuals from potential careers in data or embracing data within their organisation.

Government, businesses, and the education sector have to work together to address these misconceptions and bring data out of the realm of specialists, and into the real world. The UK’s National Data Strategy is a step in the right direction, setting out a clear vision of “digital Britain” and a framework to make data more usable, accessible and available across the UK economy.
Here are four key opportunities to encourage businesses and consumers alike to embrace data.

Demonstrate the value of data for personalisation

We must highlight the business benefits of using data collection to create truly personalised and seamless customer experiences. Too often, businesses’ data processes are not joined up – leading to a clunky and interruptive experience for customers. Brands that can’t recognise individuals across channels waste spend, messaging and targeting. Seeing the same advert for a product you bought last week isn’t productive for the company or consumer.

For these companies, the challenge isn’t access to data, it’s about using it cohesively to provide a smoother digital experience. To drive buy-in for the value of data within a business, it helps to demonstrate that using data to improve personalisation is likely to boost customer experience and, ultimately, sales.

Simplify how we talk about data

Seeking consent and letting customers know what their data is being used for is already mandatory, but many companies rely on procedural and complex language to explain their data management processes. This strengthens the myth that data is a specialist field that is too complicated for the average person to engage with. We need to simplify and reframe how we talk about data management processes to consumers if we have any hope of helping people to perceive it as an accessible and interesting topic.

Using simple language to explain clearly why data is being collected feels more authentic, meaning it’s more likely to be persuasive. A polite, honest and simple explanation can inspire more trust, even when the data is being collected for marketing purposes.

Tackle ‘data career myths’

Changing attitudes to data should start in schools and universities, where many students disregard a career in data due to key misconceptions about the industry. Experian’s research found that 68% of students believe qualifications in maths or science are needed to succeed in a data role, while 72% believe specific data skills are required to apply for a data-related job. Gender also plays a role in the apprehension over data jobs, with men more likely to consider a data-related field (60% compared to 48% of women).

The reality is that in the digital economy of the future, the majority of jobs will involve data, with 234,000 vacancies currently available for data roles in the UK. To fill them, we need to dispel the myth that everyone must become a data scientist or a coder. Rather than seeing data interpretation as a specialist skill that few have, we need to shift mindsets so that it is viewed as a foundational skill. In fact, there are many data roles that do not necessarily require advanced data analytics qualifications, including data security and governance, data processors and data engineers. Even AI solutions can now be created via AI tools for non-coders.

To widen the candidate pool and ignite students’ interest in data, we also need to combat the outdated perception of data roles as ‘boring’ – in reality, many cutting-edge brands, like Google and Tesla, are based on innovative use of data. Consideration around how to broaden the appeal of data roles to entice students from a wide range of backgrounds and offer them a range of career paths will also be vital. Universities should no longer be seen as the sole source of all data candidates.

Show off the global, positive impact of data

Finally, data is too often considered in the abstract by the public. People need real-life examples to engage with, and data gives us those very insights needed to inspire public support and willpower for real action.

There’s no better way of demonstrating data’s impact on the real world than showcasing how it is helping humanity to address global crises, such as COVID-19 and climate change.

Take Experian DataLabs, which helped the NHS plan for future waves of COVID-19 cases by modelling the disease characteristics with daily updated public information. Data scientists used advanced technology and more than 10 public and proprietary data sources to create a simulator that forecasts when and where the next wave of the virus was likely to have an impact on hospital resources – helping the NHS to plan distribution and supply chain.

If we really want to inspire a change in attitude to data, we must spotlight these relatable, impactful data case studies with a clear positive societal outcome. Changing how businesses communicate about data will collectively improve society’s understanding, and our willingness to embrace its full potential.

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Business

How can law firms embrace automation and revolutionise their payments?

Published

22 hours ago

September 28, 2023

editorial

Attributed to: Ed Boal, Head of Legal at Shieldpay

Once again, AI is dominating international headlines. This time, it’s due to a closed-door meeting this month between tech leaders and US senators to discuss the technology’s regulation.

AI and automation isn’t just for the likes of Big Tech. We’re seeing predictive and automated technologies transform almost every sector and the legal industry is no exception. In fact, recent research from HBR Consulting found that 60% of law departments had implemented a legal data analytics tool last year and more than 1 in 4 indicated they were using AI for at least a single use case.

However, adoption isn’t without its challenges. Reticence remains among some and there’s also the danger of ‘transformation fatigue’ slowing real progress. If law firms want to reap the many benefits of automation – including revolutionising their payment processes – these challenges need to be carefully considered and thoughtfully addressed.

An area of great opportunity

Often seen as conservative, the legal industry has been gradually warming up to the idea of automation and technology.

While some pioneering firms have been quick to embrace automation tools, others remain cautious about disrupting their established workflows. As we navigate this landscape, it’s clear that certain areas of legal services are ripe for innovation.

One area is contract management. The process of drafting, reviewing, and managing contracts has traditionally been time-consuming and prone to human errors. Automation can alleviate these pain points by streamlining the entire lifecycle of contracts, from creation to renewal, thereby enhancing efficiency and reducing risks.

Another promising domain is legal research. Thanks to advancements in natural language processing and machine learning, legal professionals can now leverage AI-powered research tools that analyse vast volumes of legal data to provide accurate insights and case precedents swiftly.

But, while progress is undoubtedly being made, the legal sector still lags other sectors when it comes to innovation.

What’s getting in the way of progress?

This isn’t always down to a resistance to change. Often, it’s a result of firms spreading their resources too thinly across numerous technology initiatives.

Ed Boal

Attempting to tackle everything at once can result in ‘transformation fatigue’, where the benefits of individual innovations get diluted – leading to frustration and slower progress.

Before legal firms embark on digital transformation projects, a critical first step is introspection. Recognising and acknowledging areas where legacy processes and manual tasks still hold sway is paramount to optimising the impact of automation.

For many firms, archaic practices continue to consume valuable time and resources, diverting attention from higher value, billable tasks. One often-overlooked area is payments.

Legal firms play a critical role in complex transactions, from M&A and real estate deals to litigation and arbitration payments. The associated admin and processes represent a drain of firms’ time and resources. Spanning everything from collating stakeholder payment details and verifying payee identity to ensuring compliance with Know Your Customer (KYC) and Anti Money Laundering (AML) regulation, this adds unnecessary stress for lawyers – who would rather dedicate their time and expertise to their clients’ legal needs.

The repercussions of such time-consuming financial processes reverberate throughout the entire organisation. Administrative burden weighs heavily on the team, affecting productivity and ultimately, the bottom line: recent research from Shieldpay, surveying the UK’s Top 100 law firms, found that almost 1 in 3 (32%) say KYC collection and verification checks take 4-9 working days.

At the same time, firms are exposed to significant financial risk which can make handling client funds a costly endeavour. Not only are they penalised with fines if found to be in breach of stringent client account rules but firms are also subject to hefty premiums for Professional Indemnity (PI) insurance. No wonder 73% of all legal professionals and 90% of junior law professionals are concerned about the risks and time costs associated with holding client funds.

Revolutionising payment transactions

In short, manual payment processes are more than just an inconvenience for modern law firms. They can damage relationships with clients – who have come to expect a fast, painless and automated payout experience in a digital world – and impede revenue generation by tying up top talent in an endless cycle of paperwork and (unbillable) admin.

So how can firms take the pain out of legal payments?

Fortunately, new payment technologies have emerged as a formidable ally. Third-party payment providers offering solutions for law firms, such as escrow and paying agent services for specific transactional deals, or more embedded payment solutions such as managed accounts (TPMAs) – i.e. outsourced client account functions – offer secure and instant transactions, while prioritising transparency and automation.

TPMAs operate as an escrow payment service in which the third-party – a licensed external payments partner – receives and disburses funds on behalf of a firm and their client(s).

With advanced encryption ensuring data security, working with a regulated payment partner means legal professionals and their clients can engage in financial transactions with peace of mind – while law firms benefit from improved operational efficiency.

And the advantages don’t stop there. Enhanced transparency builds a sense of confidence and trust, while the elimination of manual data entry and repetitive tasks allows legal professionals to devote more time to legal services and fostering stronger relationships with their clients.

AI and automation has much to offer the legal sector. But its adoption must be carefully planned in order to avoid transformation fatigue that risks stalling progress altogether. With typically shallower pockets than Big Tech giants, it’s important for law firms to focus their efforts on specific areas that could benefit from automation, rather than rush to overhaul their entire way of working, all at once. This controlled phase-out is the key to avoiding adoption frustration, seeing a real impact on profits and productivity and setting firms up for real, lasting change.

Business

In-platform solutions are only a short-term enhancement, but bespoke AI is the future

Published

2 days ago

September 27, 2023

editorial

By Damien Bennett, Global Director, Principal Consultant, Incubeta

If you haven’t heard anyone talking about artificial intelligence (AI) yet, then where have you been? Conversations about AI and its advantages to society have been a key talking point over recent months, with advances being made in the generative AI race and ChatGPT opening a whole plethora of possibilities. Many have highlighted the advantages of AI, but notably it’s ability to create human-like content.

But these discussions have only scratched the surface of what AI is capable of doing. It is for far more than just essay writing, adding Eminem to your rave and photoshopping dogs into pictures.

In marketing, we have been using AI for years, for everything from analyzing customer behaviors to predicting market changes. It’s enabled us to segment customers, forecast sales and provide personalized recommendations, having a huge impact on how our industry works.

It is even, for the more savvy marketers of the world, becoming a key tool in maximizing budget efficiency – which is apt, considering over 70% of CMOs believe they lack sufficient budget to fully execute their 2023 strategy.

Now, as AI becomes more intelligent, the number of efficiencies it can unlock continues to rise. Not only can it help brands get the most out of their available resources and identify any areas of waste, but it can also help highlight new opportunities for growth and maximize the impact of your budget allocation.

The trick, however, is to veer away from the norm of using in-platform solutions with a one-size-fits-all approach and create your own, bespoke solutions that are tailored to your business needs.

Pitfalls of in-platform solutions

In-platform solutions aren’t by any means a bad thing. In fact, built-in AI tools have become increasingly popular, owing to their ease of integration, user-friendly interfaces and minimal set up requirements. They come pre-packaged with the platform, offering the user the ability to leverage AI technologies without the need for in-depth technical expertise or the upfront cost of building a solution from scratch.

However, the streamlined and accessible nature of in-platform AI solutions comes at the expense of complexity and customization. They are designed to serve a broad user base, but for the most part are built using narrow AI solutions with predefined features and workflows.

This makes them great for assisting with common AI tasks, but they lack the flexibility to tailor functionality towards unique business requirements or innovative use cases, limiting the potential efficiencies and cost savings that can be unlocked. Additionally, if a business’ competitors are using the same platform, they are probably using the same AI solution, meaning any strategic advantage gained from these will be reduced.

Bespoke AI solutions, on the other hand, may carry a higher initial investment – but can offer a significantly more attractive ROI over a short amount of time.

Why customized and adapted AI is the key

The difference between bespoke AI and in-platform solutions is similar to that between home cooked food and a microwave meal. Yes, it is more time consuming to prepare, and yes it likely carries more of an upfront cost, but the end result is going to be far more appealing and will carry more long-term value (financially… not nutritionally).

That’s because bespoke solutions, by nature, will have been tailored to address your brands specific needs and challenges. These custom-built tools allow for much greater efficiencies by streamlining workflows across different channels, automating more complex tasks, and providing deeper, more relevant insights.

The increased level of optimization can significantly improve productivity and reduce operational costs over time, offering a higher ROI. The increased flexibility of bespoke AI also allows brands to implement innovative use cases that can significantly differentiate them from their competitors.

The data analyzed can be specifically chosen to match business requirements, as can the outputs of the AI tool, providing a significant advantage when understanding and acting on the insights provided.

Additionally, these tools are, by nature, more scalable. They can be updated, upgraded and expanded as needs change, ensuring they continue delivering value as the business grows. They can also be designed to integrate with any existing IT infrastructure, from CRM systems and databases to marketing platforms and sales tools – leading to more efficient and effective decision-making.

Managing finances with AI

It’s no secret that AI in marketing automation has, and will continue to, revolutionize the way marketing is done. It has a bright, if slightly terrifying, future and can help CMOs to unlock new efficiencies, maximize the impact of their budgets and increase their ROI. And as this technology becomes more advanced, its impact will only increase.

But we already know that…and so does everyone else.

So, in order for businesses to make themselves stand out from the crowd , they must look to fully adopt the power of AI. Creating a customized and unique AI solution could be the way to set yourself apart from your competitors. A bespoke AI tool can provide brands and businesses with features unique to them and their business needs. As a result, companies will benefit from more useful data and better results to make more data-driven decisions for their business. Ultimately, this will help brands to maintain a competitive edge over their competitors, deliver ROI and most importantly optimize their budgets.