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Tag: Forrester Consulting

  • Experian report highlights Generative AI’s growing role in fraud attacks

    Experian report highlights Generative AI’s growing role in fraud attacks

    MUMBAI: Experian, has released its latest research, offering insights into how Generative AI (GenAI) is reshaping the fraud landscape. Conducted by Forrester Consulting, the study surveyed 449 senior fraud protection professionals across multiple countries, including India, uncovering a surge in fraud losses due to identity theft and the critical need for AI-driven security measures.

    The report highlights a shift from individual fraudsters to organised crime syndicates, with GenAI accelerating this transformation. In India, 85 per cent of businesses agree that GenAI has permanently altered the fraud landscape, making attacks more complex. The rapid industrialisation of fraud enables criminals to mass-produce deepfakes, synthetic identities, and large-scale scams. Alarmingly, 50 per cent of firms struggle to detect GenAI-driven fraud or quantify its financial impact. To counter this, businesses must implement AI-powered fraud prevention tools, adopt integrated security measures, and enhance fraud orchestration strategies to bolster detection and reduce costs.

    As fraud tactics evolve, businesses are recognising the need for external collaboration and advanced fraud prevention technologies. In India, 77 per cent of fraud decision-makers stress that partnerships with external organisations are vital for tackling fraud effectively. Additionally, 61 per cent support data-sharing consortia as an effective method for tracking emerging fraud trends. Encouragingly, 74 per cent of Indian firms report a positive return on investment from participating in such initiatives, underlining the benefits of collective action.

    The study underscores the importance of integrating diverse data sources into supervised and unsupervised Machine Learning (ML) models to enhance fraud detection. However, 48 per cent of Indian firms struggle with ML implementation due to a lack of training data, while 60 per cent cite poor data quality as a barrier. Developing in-house ML models is complex, making customisable, off-the-shelf ML solutions a faster and more effective alternative.

    Experian India country managing director Manish Jain commented, “At Experian, we are committed to staying ahead of emerging threats by leveraging advanced technology, data analytics, and industry consortia. Our ML-based tools, such as the Mule Risk Indicator, integrate traditional and non-traditional data points to help financial institutions identify and mitigate fraud. By promoting these advanced solutions, we empower businesses to navigate an increasingly complex fraud landscape while ensuring data security.”

    Experian EMEA & APAC chief operating officer Shail Deep, added, “The integration of ML-driven fraud prevention is no longer optional our research shows that 85 per cent of fraud experts believe GenAI has fundamentally altered the threat landscape, with over 52 per cent reporting increased fraud losses in the past year. Businesses must act now by adopting flexible, cutting-edge fraud prevention tools. At Experian, we remain focused on innovation, ensuring our technology continues to strengthen detection capabilities and create a safer digital environment for clients and consumers alike.”

     

  • India excels in Cloud, AI, and ML: 85 per cent of Indian businesses use cloud providers for analytics: Experian Study

    India excels in Cloud, AI, and ML: 85 per cent of Indian businesses use cloud providers for analytics: Experian Study

    Mumbai: India demonstrates remarkable resilience in the face of a challenging global landscape, according to the World Bank. Robust domestic demand, public infrastructure investments and the strengthening of the financial sector collectively contribute to India’s performance. As a testament to this resilience, a staggering 77 per cent of business leaders surveyed maintain a positive outlook for the upcoming year. These findings emerge from a comprehensive study conducted by forrester consulting commissioned by Experian, a global information services leader. The study also explores the profound impact of AI on analytics, risk assessment and customer experience. Notably, India demonstrates impressive AI and Machine Learning (ML), adoption rates, reaching 49 per cent in customer service and 40 per cent in identity verification.

    The study highlights India’s leadership in the EMEA and APAC regions, with 85 per cent of surveyed Indian businesses using external cloud providers for analytics. India’s adoption outpaces countries like Germany (66 per cent), New Zealand (per cent), and Spain (58 per cent), solidifying its position as a front-runner in cloud, AI, and ML utilisation.

    Role of AI in mitigating top risks:

    The report delves into the transformative potential of AI, the biggest risk priorities, and underscores how AI plays a pivotal role in fortifying resilience. Data privacy (59 per cent) and cybersecurity (53 per cent) emerge as the top risk concerns for the upcoming year, followed by ESG risk (47 per cent) and credit risk (41 per cent).

    Effectively mitigating these risks depends on improving the predictiveness of models and unlocking value from a wide variety of data sources. In this regard AI, particularly ML stands out as an instrumental tool with immense potential.

    Data integration and cloud investments drive AI success:

    Achieving AI success requires large volumes of data and the right data infrastructure. Despite an increase in new data sources, the biggest data-related challenge (for 48 per cent of respondents) pertains to the difficulty in effectively sharing data at a large scale while ensuring trust and security. As a result, 86 per cent of business leaders are prioritising investments in new data sources to better understand risk and affordability.

    The research shows that the biggest analytics-related challenge for nearly half of respondents (55 per cent) is the ability to seamlessly connect different data assets in a data warehouse that can adequately support AI/ML use cases. To address this issue, 86 per cent are prioritising investments in cloud technology for seamless data integration with 63 per cent agreeing that externally hosted cloud services are the best way to avoid data silos and aggregate data sources.

    Unlocking AI’s potential: productivity and efficiency enhancements:

    There are multiple ways in which AI can improve productivity, efficiency, and service delivery. Many organisations are actively exploring AI use cases, with a diverse range of possibilities, including enhanced underwriting with ML-based models, proactive and early identification of vulnerable customers, improved fraud prevention and faster customer service. More than half (65 per cent) of those already using AI find that their productivity gains have offset the initial cost – a clear indication of positive ROI from AI adoption.

    Experian managing director Saikrishnan said, “AI is currently leading the way in identifying innovative approaches to unlock the power of data, revolutionising business operations and elevating customer experience. As businesses engage with increasingly intricate decisions, AI plays a pivotal role in optimising the efficiency and effectiveness of business processes. Embracing the enduring role of AI becomes imperative, providing unparalleled insights for precise decision-making, particularly in critical areas such as risk management and fraud prevention. Simultaneously, it ushers in a new era of operational efficiency through automation, ultimately elevating the customer experience to new heights.”

    “AI/ML has increasingly emerged as a pivotal catalyst in combating new fraud challenges, automating credit risk processes, and leverage alternative data. AI is rapidly transitioning from a choice to a necessity, driving improved business performance and fostering inclusive financial growth,” he further added.

    Adding to it, Experian CEO, EMEA & APAC Malin Holmberg said, “While AI is driving innovation and enhancing analytical performance, it is critical to ensure this technology is used in a responsible and ethical way. It is reassuring that 61 per cent of our respondents have a comprehensive AI risk management program in place and are actively addressing unintentional bias through fully transparent and explainable AI. Businesses that embrace this technology will find themselves at an advantage as they unlock new growth opportunities through process efficiency and greater automation,”

  • New Epsilon study reveals that only 2% of consumers choose marketing updates via. SMS as their top preference

    New Epsilon study reveals that only 2% of consumers choose marketing updates via. SMS as their top preference

    MUMBAI: Epsilon, a global leader in creating connections between people and brands, today released the commissioned study ‘Marketing In India Is Personal, Not Just Business’ conducted by Forrester Consulting. The findings revealed the huge chasm between what marketeers believe they need to do to reach consumers, and what consumers actually prefer.

    The study analysed the marketing techniques used by Indian brands and the areas they could improve to optimise their Return on Marketing Investment (ROMI). The findings indicate that 74% of marketeers use marketing technologies to reach consumers via SMS while only 2% of consumers prefer to receive marketing updates through this channel.

    The online survey of more than 600 people that included both consumers and senior marketing professionals in decision-making roles from retail, consumer packaged goods, financial services, insurance and travel, and hospitality brands in India. The study sought to understand the use of marketing technologies across targeted industries and its relationship with consumer expectations regarding advertisements, loyalty and brand engagement.

     Key finding of the survey : (Elaborated in Annexure)

    ●        63% of  Indian consumers prefer personalized marketing and are inclined to purchase from brands that provide relevant content and offers

    ●        About 78% of consumers expect companies to have a mobile app (50% regularly keep in touch with their most frequently-purchased brand on their mobile apps), and 68% feel frustrated when a website is not mobile-friendly

    ●        In the next 12 months, 60% of  marketeers plan to increase their technology spends

    ●        71% plan to increase spending on advertising and marketing performance measurement solutions

    ●        72% of the 25-34 years old read product reviews online

    ●        63% of  Indian consumers are not willing to share personal information with companies to receive more relevant advertising however over 90% will give up information for perks and benefits

    ●        Consumers require transparency and privacy protection, but only 15% of marketers in India consider preparing for GDPR as a priority

     In line with this, Ashish Sinha, Country Head, Epsilon shared, “This research is a barometer for marketeers to guide them in reorienting their strategies and priorities to serve their consumers better and more effectively. We need to help marketeers understand what they are misreading when it comes to customer engagement. The study helps understand consumers and their predilections to help marketeers evolve. For instance, the study found, although about 92% of marketeers in India consider improving their ability to personalize capabilities as priority in marketing, the Indian market is unfledged in terms of data and technology readiness, cross-channel expertise, and in bridging organizational silos.”

    He further added, “It is a big challenge for marketeers to opt for and use the right technology to help them make sense of data and make triable marketing decisions as fast as possible. Matters like privacy are sensitive areas for Indians and hence, marketeers need to sustain a balance between personalization and privacy.  Indian marketeers need to find good partners with proven expertise for strategic guidance around collecting, cleansing and integrating consumer data and break down the internal data layers to improve their ROMI.”

    Marketeers need to better understand how consumers want to be served in order to align their (Enterprise Marketing Technology) EMT investments and optimize their omnichannel marketing.