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Ally Financial (ALLY) Unveils Cloud-Based AI Platform Ally.ai

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Ally Financial Inc. (ALLY - Free Report) has launched Ally.ai, which is a proprietary, cloud-based artificial intelligence (“AI”) platform having the functionality of traditional and generative AI tools, along with specialized human touch and data security protections. The platform will allow ALLY to integrate any AI capability into business operations at an enterprise scale.

ALLY’s chief executive officer, Jeff Brown, stated, “Generative AI has the potential to be a game-changer in financial services and global business in general. As a digital-first company, we are going to do it right with AI – exploring the technology in a responsible manner with core principles and controls firmly in place.”

In terms of AI, Ally Financial focuses on problem-solving and future scalability with significant importance on human training, feedback and oversight.

ALLY has three core principles. The first is to focus on use cases that support employee productivity and optimize internal business processes. The second is to provide human intervention and controls for oversight and training. Lastly, prevent the disclosure of personal identifying information and restrict external generative AI models from learning or training with Ally data.

The company’s chief information, data and digital officer, Sathish Muthukrishnan, said, “As part of our long-term One Ally technology strategy, we have been advancing our data ecosystem end-to-end and using deterministic AI models and frameworks for many years. The launch of the Ally.ai platform is the next evolution framing how we power deeper and more meaningful digital experiences while also unleashing productivity and new efficiencies.”

Muthukrishnan added, “Our teammates are being actively trained and involved in the evaluation and use of generative AI technology. Any time we launch a pilot program or explore the use of generative AI in any setting, human intervention and oversight mechanisms are fully defined ahead of time. The AI Working Group and business leaders will agree to how the use case will be tested and what will be measured, and if there's value in the outputs.”

Notably, the Ally.ai platform, powered by Microsoft Azure OpenAI Service, went online this June. The company intended to launch the first pilot program with its customer care and experience team later in the same month.

With the debut of the platform, ALLY launched a customer call summarization pilot program that supported more than 700 associates. Over the next 30 days, Ally.ai assisted associates in transcribing and summarizing live customer service phone calls in real time.

Now, approximately 82% of summaries coming back from Ally.ai do not require any human modification. Also, Ally.ai summarizations have helped focus energy on more meaningful customer interactions, reducing the time needed to document the conversation and toggle between screens.

Ally Financial has been continuously making efforts to enhance its digital offerings and introduce new products to boost profitability. As part of its strategy to diversify into banking products, the company has forayed into the mortgage business, which is supporting earnings growth. Moreover, ALLY’s wealth management and online brokerage initiatives related to the credit card offerings are impressive.

Over the past six months, shares of ALLY have gained 12.2% compared with the industry’s growth of 5.9%.

 

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Currently, ALLY carries a Zacks Rank #5 (Strong Sell).

A couple of better-ranked stocks from the same space are Credit Acceptance Corporation (CACC - Free Report) and Mr. Cooper Group Inc. (COOP - Free Report) . CACC and COOP currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 30 days, the Zacks Consensus Estimate for CACC’s current-year earnings has been unchanged. The company’s shares have gained 17.3% in the past six months.

COOP’s earnings estimates for 2023 have been revised marginally lower over the past 30 days. In the past six months, its shares have gained 31.7%.


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