Across all industries, businesses continue to spend money on unnecessary labor costs, particularly on the heels of the COVID-19 pandemic. Significant staffing shortages over the last couple of years have raised the cost of labor. According to some estimates, private-sector labor costs in the United States increased by 4.4 percent in 2021. In the leisure and hospitality sector, that figure is double – at about 8 percent. The big picture The industry has found that it can deploy artificial intelligence and advanced analytics to manage costs, including with the use of bots to replace expensive human labor. We are seeing a new wave of advanced automation that is capable of performing 10 to 25 percent of work across bank functions, allowing employees to focus on higher-value tasks. The challenge for banks is finding the best way to get started, as some have seen significant downsides to scaling automated services – lacking the manpower and capabilities to monitor the technology and ensure it is performing effectively. But others have seen tremendous success stories.
The right virtual approach can be a game changer.
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