Page 15 - AI for Good - Impact Report

AI for Good

food systems operate more efficiently and sustainably, minimizing food waste and reducing
greenhouse gas emissions.

The financial services industry is experiencing substantial disruption due to AI as well. With its
reliance on large volumes of data, AI is used to automate routine tasks, mitigate risks, prevent
fraud, and generate new insights.

AI is playing a crucial role in fraud detection within the financial industry. By analyzing large
30
volumes of data, AI algorithms can identify potential fraud cases more efficiently and accurately
than traditional methods. This capability is essential for mitigating risks and ensuring the security
of financial transactions. AI tools are used to monitor transactions and recognize behavior
patterns that could indicate fraudulent activity, thereby enhancing the effectiveness of financial
crime prevention.

AI-driven tools like robo-advisors, digital wallets, and chatbots have the potential to democratize
financial services by making them more accessible to underserved and previously unserved
communities. These tools provide immediate support and guidance, enabling individuals in
31
remote areas to manage their finances more effectively. One example is Mongolia, which is
characterized by vast distances and a dispersed population. The government's proactive digital
transformation efforts, including platforms and other AI-based initiatives, have significantly
modernized the financial landscape, despite the traditionally slow adoption of digital experiences
by banks. Key developments like a digital wallet, legislative support for investment banks, and
partnerships with international fintech entities are driving financial inclusion and economic
growth in Mongolia. 32

Regional AI adoption and investments vary

The introduction of and progress in AI in different industries varies considerably between
regions, influenced by factors such as technological advancements, economic potential, and
investment in AI research and development (R&D). Globally, the AI adoption rate in businesses
(actively deploying and exploring AI in its business operations combined) stood at 82% in
2023, reflecting a widespread recognition of AI's potential to drive innovation and efficiency.
33
According to a report on global AI adoption, companies from the UAE, China, India, and
Singapore are leading in actively deploying AI as part of their business operations with an
adoption rate of more than 50%. Leading industries for AI adoption include financial services,
34
retail, professional services, and manufacturing. Experts agree that the economic impact of AI
will be substantial, although there are many differing estimates of the exact figures. For example,
experts expect GenAI alone to increase global GDP by 7% (or almost US$7 trillion).
35
As stated, AI adoption is significantly linked to investment activities and available resources
in different regions. Key players like the United States, China, and the United Kingdom are
dominating AI investments, with other regions like the Middle East, Asia and parts of Europe
showing significant growth and interest. The volume of investments in AI differs greatly per
region, as the following sections show.

5