DIGITAL TRANSFORMATION AND INTRODUCTION OF ARTIFICIAL INTELLIGENCE IN A BULGARIAN COMMERCIAL BANK IN THE CONTEXT OF BUSINESS PROCESS IMPROVEMENT
DIGITAL TRANSFORMATION AND INTRODUCTION OF ARTIFICIAL INTELLIGENCE IN A BULGARIAN COMMERCIAL BANK IN THE CONTEXT OF BUSINESS PROCESS IMPROVEMENT

Summary/Abstract: The purpose of this paper is to conceptualize the relationship between Business Process Improvement (BPI) and digital transformation and introduction of AI in a Bulgarian commercial bank. Using the theoretical framework of Business Process Management this paper aims to examine the role of digitalization in improving the business processes in a bank. Furthermore, the paper discusses the idea of Business Process Improvement aimed to ensure that organizations systematically integrate emerging opportunities, such as those brought about by digital technologies and artificial intelligence. Thus, a BPI method for proactively integrating opportunities like AI and digitalization into business processes is presented and analytically discussed. The methodology in the paper combines Business Process Management methods with Innovation Management methods, provides possibilities to identify opportunities resulting from digital technologies, AI and changing customer needs, and to integrate these opportunities into improved business processes with added value propositions. The application of digital transformation and AI is observed, studied and tested in a Bulgarian commercial bank in the context of business process improvement. The business processes covered in the AI implementation relate to: providing personalized banking information in a digital environment; selling certain banking, insurance, investment and non financial products in the bank’s mobile application; after sales service to individual customers; customer contact management in a digital environment, both in the branch network, as well as in the bank's customer service call centre; automation of internal banking processes with focus on management of communication and sales offers. The fully personalised digital assistant builds on automated banking processes and leverages the full range of data available to the bank to create digital experience that is entirely focused on the customer and their needs. The findings of this paper suggest that there is a need for banks to adjust the management of their business processes with innovation management if they are deliberate to foster innovations and to be sustainable. The implementation of AI in a commercial bank requires radical changes in the bank concept of BPM and a new methodology of business process improvement should be established and experimented. The conclusions of the paper confirm that a commercial bank basing on business process management can implement innovation management and AI thus fulfilling customers’ expectations of digitalization and new value proposition.

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