Seven Steps for AI Adoption in Credit Unions

Filene Fellow Dr. Lamont Black explores how today's credit unions can turn AI strategy into reality

In Part 1 of this series, “Is Your Credit Union Part of the AI Revolution?” Dr. Black discussed the implications of how AI is reshaping credit unions and their member experiences. Here, he gives actionable tips for credit union leaders.

At Filene, we’re not just about research — we’re dedicated to using our research outputs to drive action and impact in the real world, transform how credit unions do business, and change lives through improving consumer financial well-being. 

In my work as an Associate Professor of Finance at DePaul University and Lead Fellow at Filene Research Institute’s newest Center of Excellence, The Credit Union of the Future, my team and I study AI implications in the financial services sector and how credit unions can leverage AI technology to improve operational efficiency and enhance member value.

Practical Steps for AI Implementation

One key transformation for credit unions in 2024 and beyond is to create an AI strategy and begin practical steps toward making AI an integral part of your processes. Implementing AI can seem daunting, but these seven steps will guide you through the process.

1. Get Organized
   Start by forming a dedicated AI committee that includes members from various departments. Identify existing tools like Robotic Process Automation (RPA) and Machine Learning (ML) that can be integrated into your AI strategy. Organizing resources and building on current initiatives is a key first step.
2. Start Listening
   Understand how your employees are currently using AI tools like ChatGPT and Gemini. Create policies that define appropriate usage and form listening groups to gather feedback. This helps in aligning AI adoption with employee needs and organizational goals.
3. Empower Your Employees
   Train your employees to interact with AI tools. Ensure your data infrastructure supports AI applications and roll out licenses for tools like Microsoft 365 Copilot. Proper training will enable employees to use AI effectively in their daily tasks.
4. Access Your Knowledge
   Use AI to make your knowledge base more accessible and relevant. Implement tools like Retrieval Augmented Generation (RAG) to provide personalized recommendations to employees and members. This enhances the usability of your knowledge base, giving it more power than you ever thought possible.
5. Explore Use Cases
   Identify specific business problems that AI can solve. Use AI for automating tasks like loan underwriting, fraud detection, and risk management. Explore how AI can mitigate contact center overload, improve member services, empower employees, and reduce friction.
6. Collaborate With Others
   Partner with vendors and other credit unions to explore AI applications. Collaborate on best practices and stay updated with the latest AI technologies. Vendor partnerships can provide valuable insights and accelerate AI adoption.
7. Create Member Value
   Focus on using AI to enhance member experiences. Implement chatbots for answering inquiries and providing personalized financial advice. Ensure that AI tools empower members rather than deflecting them. This approach improves member satisfaction and loyalty.

The Future of AI in Credit Unions

AI presents both risks and opportunities for credit unions. While concerns like security and bias need to be addressed, the benefits of AI far outweigh the risks. By adopting AI responsibly, your credit union can enhance member experiences, streamline operations, and drive innovation.

AI is transforming the financial services industry, and credit unions simply must adapt to stay competitive. By learning about evidence-based best practices from organizations like Filene, collaborating with credit union peers, and leveraging technology enabled by vendor partnerships, you can harness the power of AI to improve services and continue driving member value, now and in the years to come.

The Future Is Now 

If you’re intimidated about how to best incorporate these kinds of technologies in your credit union, you’re not alone. Every credit union is trying to figure this out. But you can’t let it stop you, because the fear of getting it wrong can lead to paralysis — and falling behind. Try something, evaluate, and then iterate and pivot. But don't wait to get started — start developing your AI strategy today and position your credit union for success in the future.

Missed Part 1 of this article series? Click to read “Is Your Credit Union Part of the AI Revolution?” to see background research on how AI is transforming the industry, from personalized member services to operational efficiencies.

Want to learn more?

To download the full research report The Evolution and Impact of AI in Credit Unions, as well as a wealth of other credit union resources, consider becoming a Filene member, with full access to all reports and research as well as events and other opportunities to connect with high-performing, forward thinking credit unions dedicated to innovation and improving lives.

You can also access this full research report as part of State National’s industry-exclusive sponsorship with Filene. The report also includes a link to a webinar hosted by Dr. Black, Filene EVP Christie Kimbell, and John Best, CEO at Best Innovation Group, that explored the growing adoption of AI in a business context and shared specific use cases within the credit union industry.

"State National is a proud sponsor of Filene's Center of Excellence for The Credit Union of the Future. We recognize the value of Filene’s commitment and passion — and it makes this respected organization a clear choice as a thought leadership ally to help State National support our credit union partners." 

You can also connect with Dr. Black on LinkedIn for insights into his upcoming research.