DEGREE PROJECT IN INDUSTRIAL ENGINEERING AND MANAGEMENT, SECOND CYCLE, 30 CREDITS STOCKHOLM, SWEDEN 2020 Transforming Corporate Learning using Automation and Artificial Intelligence An exploratory case study for adopting automation and AI within Corporate Learning at financial services companies PETTER KLINGA KTH ROYAL INSTITUTE OF TECHNOLOGY SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT Abstract Transforming Corporate Learning using Automation and Artificial Intelligence An exploratory case study for adopting automation and AI within Corporate Learning at financial services companies by Petter Klinga Master of Science Thesis TRITA-ITM-EX 2020:233 KTH Industrial Engineering and Management Industrial Management SE-100 44 STOCKHOLM 2 Abstract En ny era av utbildning genom automatisering och Artificiell Intelligens En explorativ fallstudie kring möjligheten att implementera automatisering och AI inom utbildningsorganisationen på finansbolag av Petter Klinga Examensarbete TRITA-ITM-EX 2020:233 KTH Industriell teknik och management Industriell ekonomi och organisation SE-100 44 STOCKHOLM 3 Abstract Master of Science Thesis TRITA-ITM-EX 2020:233 Transforming Corporate Learning using Automation and Artificial Intelligence An exploratory case study for adopting automation and AI within Corporate Learning at financial services companies Petter Klinga Approved Examiner Supervisor 2020-06-X Matti Kaulio Jannis Angelis Commissioner Contact person Sana Labs Joel Hellemark Abstract As the emergence of new technologies are continuously disrupting the way in which organizations function and develop, the majority of initiatives within Learning and Development (L&D) are far from fully effective. The purpose of this study was to conduct an exploratory case study to investigate how automation and AI technologies could improve corporate learning within financial services companies. The study was delimited to study three case companies, all primarily operating in the Nordic financial services industry. The exploratory research was carried out through a literature review, several in- depth interviews as well as a survey for a selected number of research participants. The research revealed that the current state of training within financial services is characterized by a significant amount of manual and administrative work, lack of intelligence within decision-making as well as a non-existing consideration of employee knowledge. Moreover, the empirical evidence similarly reveled a wide array of opportunities for adopting automation and AI technologies into the respective learning workflows of the L&D organization within the case companies. Key words: Artificial Intelligence; Automation, Learning & Development; Corporate Learning; Corporate Training; Learning Workflows; Technology Adoption; Financial Services i Sammanfattning Examensarbete TRITA-ITM-EX 2020:233 En ny era av utbildning genom automatisering och Artificiell Intelligens En explorativ fallstudie kring möjligheterna att implementera automatisering och AI inom utbildningsorganisationen på finansbolag Petter Klinga Godkänt Examinator Handledare 2020-06-X Matti Kaulio Jannis Angelis Uppdragsgivare Kontaktperson Sana Labs Joel Hellermark Sammanfattning I takt med att företag kontinuerligt anammar nya teknologier för att förbättra sin verksamhet, befinner sig utbildningsorganisationer i ett märkbart ineffektivt stadie. Syftet med denna studie var att genomföra en explorativ fallstudie gällande hur finansbolag skulle kunna införa AI samt automatisering för att förbättra sin utbildningsorganisation. Studien var begränsat till att undersöka tre företag, alla med verksamhet i den nordiska finansbranschen. Den explorativa delen av studien genomfördes med hjälp av en litteraturstudie, flertal djupgående intervjuer samt en enkät för ett begränsat antal deltagare i forskningsprocessen. Forskning påvisade att den existerade utbildningsorganisationen inom finansbolag är starkt präglat av ett överflöd av manuellt och administrativt arbete, bristande intelligens inom beslutsprocesser samt en bristande hänsyn för existerande kunskapsnivåer bland anställda. Studien påvisade därtill en mängd möjligheter att införa automatisering samt AI för att förbättra utbildningsflödena inom samtliga deltagande bolag i fallstudien. Nyckelord: Artificiell Intelligens; Automatisering; Lärande och Utveckling; Företagsutbildning; Utbildningsflöden; Teknikinförande; Bank och Finans ii Acronyms Acronyms AI Artificial Intelligence RPA Robotic Process Automation IPA Intelligent Process Automation L&D Learning and Development ML Machine Learning SaaS Software-as-a-Service AIaaS AI-as-a-Service SFSA Swedish Financial Supervisory Authority iii Table of Contents Table of Contents 1. INTRODUCTION ................................................................................................................................................................. 1 1.1 BACKGROUND .......................................................................................................................................................................................... 1 1.1.1 Challenges and Opportunities in Learning and Development .................................................................................... 1 1.1.3 Technology-Driven Personalization ....................................................................................................................................... 2 1.1.4 A New Era of Learning ................................................................................................................................................................. 3 1.1.2 The Financial Services Industry ............................................................................................................................................... 4 1.2 THE COMMISSIONING COMPANY .......................................................................................................................................................... 5 1.3 PROBLEM STATEMENT ........................................................................................................................................................................... 5 1.4 PURPOSE .................................................................................................................................................................................................. 6 1.5 RESEARCH QUESTION ............................................................................................................................................................................ 6 1.6 DELIMITATIONS ...................................................................................................................................................................................... 6 1.7 EXPECTED CONTRIBUTION .................................................................................................................................................................... 7 2. LITERATURE REVIEW ...................................................................................................................................................... 8 2.1 CORPORATE LEARNING .......................................................................................................................................................................... 8 2.1.2 Learning Management Systems ............................................................................................................................................... 9 2.1.3 Integrating Training With Company Processes ................................................................................................................ 9 2.1.4 Organizational Learning .......................................................................................................................................................... 10 2.2 ARTIFICIAL INTELLIGENCE ................................................................................................................................................................. 11 2.2.2 Key components of Artificial Intelligence ......................................................................................................................... 11 2.2.3 Adaptive and Intelligent Web-based Educational Systems ....................................................................................... 13 2.3 ROBOTIC PROCESS AUTOMATION ..................................................................................................................................................... 15 2.3.1 Capabilities and Areas of Application ................................................................................................................................ 15 2.3.2 RPA in L&D ..................................................................................................................................................................................... 16 2.3.2 Limitations of RPA ...................................................................................................................................................................... 17 2.4 UNIFYING RPA AND AI ....................................................................................................................................................................... 17 2.4.1 Tackling the challenges posed by RPA ............................................................................................................................... 17 2.3 STRATEGIC IMPLICATIONS