Performance Improvement in the Private Sector
Before ChatGPT captured global attention, IBM and Lloyds Banking Group (LBG) embarked on a mission to revolutionise customer service and operational processes, hoping to harness the power of AI across the organisation, they came to IBM Consulting to turn ideas into action. We are proud to be shortlisted as MCA Award Finalists for the second consecutive year, demonstrating the value our partnership continues to deliver. Using watsonx Assistant, the bank’s existing chatbot was transformed into a first-to-market Virtual Assistant LLM Classifier that now sees upwards of 91% of customer queries answered correctly (the industry average is 60-75%). Recognising the significance of enhancing their Digital Engagement Channel for over 20 million digitally active customers, the longstanding partnership between IBM and LBG’s Virtual Assistant team paved the way for ground-breaking advancements.
The Launch of LBG’s Virtual Assistant:
Through collaborative efforts, LBG’s Virtual Assistant was launched, marking a significant milestone in customer interaction and response. Within three months of its implementation, a 25% increase in query resolution success was observed, alongside a notable £1 million per year cost-saving attributed to the Large Language Model (LLM) classifier.
The initiative aimed to address key challenges faced by LBG, including decreasing manual review expenses, improving the accuracy of natural language processing models, optimising AI model training processes, and enhancing customer service without compromising operational effectiveness. By tackling these issues, the partnership aimed to improve customer satisfaction and operational efficiency.
Key objectives included:
- Expanding the AI customer servicing system
- Increasing accuracy and repeatability
- Reducing manual effort
- Simplifying management processes, and
- Uncovering hidden insights.
These objectives were pursued through innovative experiments and practical implementation, guided by an Agile and value-led approach. A cross-functional team of experts collaborated closely, drawing on diverse skill sets and domain knowledge. Robust project governance and review processes ensured compliance and ethical deployment of AI solutions within LBG’s highly regulated environment.
Insights from the project highlighted the unexpected scale of results achieved through LLMs, emphasising the need for early access to data in development lifecycles. Measurable results included significant time and cost savings, along with improvements in system accuracy and operational efficiency.
Leaders from LBG commend the successful implementation of LLMs, acknowledging the transformative impact on customer service and operational efficiency. The collaboration between IBM and LBG sets a new standard for AI-driven innovation in the financial services sector.
In conclusion, the partnership between IBM and Lloyds Banking Group exemplifies the power of technology and human expertise in driving positive business outcomes and enriching customer experiences. By harnessing the potential of AI, the collaboration has paved the way for a new era of seamless and intuitive customer support, setting a benchmark for innovation in the industry.
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