Achieving Real Business Outcomes from Artificial Intelligence

Chapter 5. Artificial Intelligence Case Studies

In this chapter, we look at some case studies based on real-world client engagements involving custom artificial intelligence (AI) solutions in high-value business contexts. The documentation for these studies was provided by data scientists and industry analysts from Teradata Consulting. In many of the studies, the client requested to remain anonymous.

Fighting Fraud by Using Deep Learning

Note

We go into much more detail about this first case study, Danske Bank, in Chapter 6. If you prefer only a high-level overview, we present this summary here.

Danske Bank is the largest bank in the Nordics, with more than $200 billion of assets in management. As with all financial institutions, one of its biggest priorities is fighting fraud, an increasingly difficult task in today’s connected, complex, and anonymous financial transaction market.

The bank had been using a rules-based engine for fraud detection, but it was faltering against modern challenges, catching only 40% of fraudulent transactions. Furthermore, this engine suffered from an extremely high rate of false positives—99.5%. This meant an unnecessarily heavy workload for investigators as well as headaches for customers, and the problem was growing worse because of new payment methods and sophisticated fraud techniques. For Danske Bank, lowering the rate of fraud represented a huge financial opportunity for preventing monetary loss, reducing investigator workload, and improving ...