Aligning Conflicting Manager Interests When Implementing Gen-Ai Initiatives Front-To-Back - A Guide for Financial Services Executives

Abstract

Integrating the latest generative artificial intelligence (Gen-AI) technologies promises to redefine traditional industry practices and add value through increased productivity. Financial services executives must ensure the technology is adopted and scaled within their organizations. However , firms encounter difficulties in bringing use cases into production. One reason is that there are conflicts of interest between executives in the front-office and executives in the back-office when implementing Gen-AI. Issues often raised by back-office managers include concerns about safety, privacy, and accuracy. This paper studies the practical experience and lessons learned from implementing Gen-AI initiatives in a private bank. The objective is to explore the critical conflicts of interest between different manager roles regarding Gen-AI implementation. Finally, we provide seven guidelines for board members to effectively align these to enable organization-wide Gen-AI value generation and implementation. The paper offers theoretical and practical contributions for executives seeking to implement Gen-AI projects efficiently.