Know Your Why for AI: Achieving ROI in Credit Unions
Artificial Intelligence (AI) is reshaping the financial services landscape, offering credit unions the tools to streamline operations, enhance member experiences, and unlock new growth opportunities. However, achieving real ROI from AI requires more than just implementing technology—it demands a clear purpose, alignment with organizational goals, and strategic action.
At a recent CULYTICS Webinar, Tad Carlson, VP of IT of Royal Credit Union, and I shared key insights on leveraging AI at your credit union and ensuring its successful implementation in credit unions.
1. Assessing AI Readiness: Are You Prepared?
Before embarking on an AI initiative, credit unions must first assess their readiness. Readiness involves technology and the systems, culture, and governance structures that will support AI adoption.
Critical Areas to Evaluate:
Identify business challenges AI can address
Evaluate existing systems and infrastructure
Assess organizational culture and policy preparedness
For Royal, Tad explained how his credit union gauged readiness through phased leadership surveys. Initial broad polls sparked conversations about AI, which evolved into more focused follow-ups. This approach allowed leadership to determine when and where the organization was ready to embrace AI.
2. Defining the “WHY” Behind AI
Knowing the purpose behind AI adoption is crucial to ensure that solutions address meaningful business needs. AI initiatives should solve real problems, whether operational or member-centric.
Examples of Impactful AI Use Cases:
Automating member support services
Delivering personalized financial recommendations
Streamlining internal operations to reduce member friction
Carlson emphasized the value of cross-functional collaboration in identifying use cases. His team worked with various departments and potential partners to surface actionable AI opportunities. Narrowing the focus to use cases with clear action plans helped ensure practical implementation.
3. Involving the Right Stakeholders
AI success depends on having the right people at the table. Collaboration between executives, departments, and frontline staff creates a balanced approach, ensuring alignment from strategy to execution.
Key Stakeholders to Involve:
Executives to align AI with strategic goals
Data professionals to develop AI models and analytics
Frontline staff to embed AI insights into member interactions
Carlson shared that involving external partners during the rollout brought flexibility to the project and allowed his credit union to balance internal effort with vendor expertise.
4. Building the Right Infrastructure and Policies
AI implementation requires a solid foundation, including data governance frameworks, integrated systems, and clear policies. The right infrastructure ensures that AI initiatives align with the organization’s long-term strategy.
Checklist for AI Deployment:
Data management frameworks and AI governance policies
AI platforms for fraud detection and risk management
Core systems aligned with IT roadmaps and AI investments
Carlson explained how his team initially based its AI policy on existing security guidelines. As AI capabilities evolve, so too must policies, ensuring ongoing collaboration between security, compliance, and leadership.
5. Launching AI with Clear Metrics for Success
Tracking key performance indicators (KPIs) ensures that AI initiatives stay on course and deliver measurable results. Operational efficiency, member satisfaction, and financial outcomes are essential metrics for evaluating impact.
Roadmap for AI Success:
Align AI efforts with credit union objectives, such as improved operations and member experience
Launch pilot programs, assess outcomes, and scale successful initiatives
Continuously refine AI strategies by incorporating new technologies and insights
Carlson offered practical advice for credit unions at the beginning of their AI journey:
AI is just a tool – While powerful, AI is best used for targeted challenges.
Start small – Focus on a few manageable use cases to build momentum.
Take action – Launch pilot projects and refine them over time; waiting for perfection delays progress.
A Purpose-Driven Approach to AI Success
AI offers immense potential for credit unions, but its value is unlocked only when guided by a clear purpose and deliberate action. Knowing the “why” behind AI adoption, engaging the right stakeholders, and building infrastructure are critical to long-term success.
Credit unions ready to embark on their AI journey will benefit from focusing on simplicity, collaboration, and starting small. With the right strategy, AI can drive operational efficiency and exceptional member experiences, ensuring sustainable growth for years to come.
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