Page 49 - Banking Finance June 2024

ARTICLE

Improved Risk Assessment: AEI can analyze borrower's
emotional and psychological state during interactions,
providing a deeper insight into their financial behaviour and
reliability. This could complement traditional credit scoring
models, potentially reducing default rates.

Security and Compliance: The NLP (Natural Language
Processing) helps in processes like analyzing documents and
detecting possible breaches in account registration, and
documentation issues.

Staff Hiring: Job candidates' voice patterns & facial
expression are recorded to determine 'Employability Score',
which is now a days becoming an integral part of hiring
system across the MNCs. The machines can easily detect intelligent mood tracking & mental health screening and
biases and inaccuracies. assessment, providing diagnoses with an efficacy rate of
nearly 85%, surpassing that of human psychologists.
Improved Risk Assessment: Emotional AI can analyze Operable in 29 languages, Stella delivers mental health
loan applicant's emotional as well as psychological state and support by comprehending real-time emotional patterns and
provide a holistic view of the applicant to the Bank. Banks furnishing tools to help individuals manage their emotional
get deeper insights into customer's credibility and reliability. responses.
This method can complement traditional credit scoring
models, potentially reducing default rates. Challenges and Ethical Consideration:
Given that emotional AI relies on data extracted from
Recent usage of Emotional AI in India: individuals' voices, body movements, gestures, intonation,

In a recent development, Zee5, a provider of OTT platforms, and facial expressions, it raises substantial privacy concerns,
utilizes Emotional AI to identify viewer preferences in Tier particularly regarding self-discrimination, consent, and the
II and Tier III cities. Flipkart incorporates emotional AI tools potential for personal control abuse. This technology also
to strategically position sale banners on its mobile app. P&G poses challenges to values like individual autonomy and
has conducted studies considering the subconscious human dignity. Adherence to appropriate ethical
preferences of consumers to enhance the package design frameworks and guidelines, is crucial to mitigating the risk
of its products. For optimizing promotion budget allocation, of data misuse. Several issues related to these concerns are
Star Disney conducted tests with six versions of the promo elaborated below:
before launching a new primetime show. Brands are A. Data privacy and security: To develop and deploy
increasingly leveraging concepts of 'emotion AI,' including emotional AI systems, massive amounts of personal data-
facial expressions, voice modulation, eye tracking, and body such as voice memos, text messages, and facial expressions-
movements, to enhance their business offerings. Companies must be collected and examined. Serious concerns are raised
like Entropik, based in Bengaluru, claim to adopt a 'privacy- about data security and privacy as a result. A framework
preserving consent-based approach' to collect data, creating for protecting personal data is provided by the General Data
a master dataset whose insights are provided to brands such Protection Regulation (GDPR) of the European Union, which
as Zee, Flipkart, P&G, and Disney, among others. includes portions that specifically address the use of AI and
sensitive data. It is essential to guarantee compliance with
United We Care or UWC, an Indian company focused on such regulations and to implement robust privacy and
emotional wellness and mental health, has introduced an security measures in order to maintain user confidence and
AI-enabled multilingual bot named Stella. Stella engages in avoid any misuse of personal data.

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