C-Suite Perspectives On AI: Synchrony’s Rachel Moore On Where to Use AI and Where to Rely Only on Humans

As artificial intelligence (AI) continues to advance and integrate into various aspects of business, decision-makers at the highest levels face the complex task of determining where AI can be most effectively utilized and where the human touch remains irreplaceable. This series seeks to explore the nuanced decisions made by C-Suite executives regarding the implementation of AI in their operations. As part of this series, we had the pleasure of interviewing Rachel Moore.

Rachel Moore is the Senior Vice President, Head of Incubation at Synchrony. Moore and her team are responsible for driving the incubation agenda to accelerate discovery of new potential products and capabilities aligned to key trends impacting the financial services industry.

Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

After graduating from the University of Wisconsin at Madison, I went back to my hometown in Maryland and managed a retail store. I thought I wanted to own my own business and open stores all over the world. But I quickly learned that I didn’t want to be in my hometown and didn’t want to work weekends. At the same time, a few of my closest friends had moved to New York City. So, without a ton of contemplation, I decided to make the move, which frankly was very unlike me — as I’m typically quite a planner.

With a number on a napkin, I got my first gig as an Executive Assistant to the CEO of a start-up. I learned a ton from working in that environment. I also joined a professional women’s association and, being in New York, the women I met were almost all in Finance. I met three women from American Express, and they were all brilliant, fun, and cool. I reached out about opportunities to work there, and one of them had an opening on her team. I made the move to financial services roughly 20 years ago and have been there ever since.

I landed in an innovation role rather naturally by joining a brainstorming session that directly linked me to a Citi program called D10X, led by the Ventures team, where they taught employees how to think and operate more like start-up founders. This then turned into a full-time job in innovation. From there, I went to Chase to lead the Branch Innovation Lab for around 3 years, and I have now been with Synchrony leading Incubation for about 1.5 years — and loving it!

It has been said that our mistakes can be our greatest teachers. Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?

I love this question. My answer is more of a cumulative learning from several mistakes which is to think for yourself and to think critically. Ask questions, dig in, be curious forever and only when you fully understand the why behind something can you unleash your full potential. Most of my mistakes were when I pretended I knew what was happening — it all falls apart when you don’t really get it. Own it.

Are you working on any exciting new projects now? How do you think that will help people?

I’m working on many exciting new projects. Frankly, all the projects are exciting as my role in Incubation requires that we identify the emerging trends happening in the world around us and then test them in ways to understand what consuming the new technology or doing something differently could mean for Synchrony.

One such project is focused on Generative AI and how it can help with the effectiveness of search engines. We leverage search in so many parts of our daily lives, and if the models can allow a user’s prompt to be better understood — essentially the essence of the question versus the specific question — that has the potential to save people so much time, frustration, and actually be a delighter. There are several use cases for this underlying tool. Wouldn’t all of us love to be better understood?

Thank you for that. Let’s now shift to the central focus of our discussion. In your experience, what have been the most challenging aspects of integrating AI into your business operations, and how have you balanced these with the need to preserve human-centric roles?

The most challenging aspects of implementing AI technology include data quality and availability, regulatory compliance, and the interpretability of AI models. We needed to consider how to navigate issues surrounding bias and fairness, scalability and integration with existing systems, and cybersecurity risks. Additionally, acquiring and retaining skilled talent, assessing the cost-effectiveness of AI implementation, and managing organizational change are crucial aspects.

Overcoming these obstacles required a multifaceted approach. Synchrony prioritized data quality assurance, ensure compliance with regulations and strive for transparency and fairness in AI model development. We carefully evaluated scalability, cybersecurity measures, and cost-effectiveness alongside efforts to recruit and retain AI talent and manage organizational change effectively. By addressing these challenges comprehensively and collaboratively, we could successfully implement AI technology into several areas of the business, including faster credit decision-making while upholding ethical and regulatory standards.

A wide-reaching AI strategy has allowed us to make credit decisions in seconds by analyzing and authenticating data quickly. This agility not only benefits cosmetic patients and consumers by enabling them to swiftly obtain the financing they need but also drives sales for our esteemed retailers and partners. With enhanced data insights and a comprehensive perspective, we are better equipped to make informed risk-based decisions, further cementing our position as a leader in the financial services industry.

Can you share a specific instance where AI initially seemed like the optimal solution but ultimately proved less effective than human intervention? What did this experience teach you about the limitations of AI in your field?

A key differentiator for Synchrony is the role of an inclusive and responsible lender in the consumer financing ecosystem. Synchrony credit cards are often a first line of credit for many consumers whether they are buying new tires, a new sofa, or a new wardrobe. Synchrony extends credit responsibly to meet customers’ needs at the right time using a proprietary enterprise-wide credit decision platform, PRISM.

PRISM combines machine learning and human contributions to differentiate Synchrony by giving us a more holistic view of customers and helping with approval rates and fraud reduction while improving the customer experience. For each person seeking credit, PRISM evaluates thousands of attributes, using analytics, and machine learning to make a credit decision in seconds. Given Synchrony’s breadth of 70 million+ account holders, processing billions of transactions annually, and more than 400,000 merchant partners, Synchrony has access to a rich set of proprietary data. Synchrony believes that by utilizing more and better data, in real-time with proprietary analytics capabilities, it can add context to customer’s behavior and make better lending decisions.

By offering a more holistic view of consumers, PRISM increases approval rates for a similar level of risk while reducing fraud. It has comprehensively transformed how we provide credit and manage risk. With these differentiated capabilities, PRISM has been able to increase incremental eligible approval rates per year through better decisions and has helped Synchrony reduce fraud.

While AI and machine learning are pivotal in navigating the complexities of the digital age, in this instance, their true value comes when combined with the dozens of agile teams working behind the scenes to make this differentiated capability function.

How do you navigate the ethical implications of implementing AI in your company, especially concerning potential job displacement and ensuring ethical AI usage?

Cultivating a culture of lifelong learning at Synchrony will help our teams develop the skills needed to succeed in an AI-powered workforce in the future. Within our culture of innovation, we encourage continued curiosity around innovative tools that can enhance the ways we work and provide insight into opportunities in breakthrough technologies. Humans are — and will always need to be — a part of the process.

Given the myriad potential risks that could arise from use of this technology (e.g., bias, unfairness, lack of transparency or explainability of the basis for outcomes, etc.) without thoughtful vetting and implementation of appropriate controls, Synchrony has proactively established an internal Responsible AI advisory group composed of a cross-functional team that includes leaders from our legal, credit, data, marketing, finance, HR, and technology teams as well from business units with P&L responsibilities and our second line of defense. Additionally, the Technology Committee of our Board is actively engaged in understanding the opportunities and risks associated with emerging technologies, including AI.

Could you describe a successful instance in your company where AI and human skills were synergistically combined to achieve a result that neither could have accomplished alone?

A key differentiator for Synchrony is the role of an inclusive and responsible lender in the consumer financing ecosystem. Synchrony credit cards are often a first line of credit for many consumers whether they are buying new tires, a new sofa, or a new wardrobe. Synchrony extends credit responsibly to meet customers’ needs at the right time using a proprietary enterprise-wide credit decision platform, PRISM.

PRISM combines machine learning and human contributions to differentiate Synchrony by giving us a more holistic view of customers and helping with approval rates and fraud reduction while improving the customer experience. For each person seeking credit, PRISM evaluates thousands of attributes, using analytics, and machine learning to make a credit decision in seconds. Given Synchrony’s breadth of 70 million+ account holders, processing billions of transactions annually, and more than 400,000 merchant partners, Synchrony has access to a rich set of proprietary data. Synchrony believes that by utilizing more and better data, in real-time with proprietary analytics capabilities, it can add context to customer’s behavior and make better lending decisions.

By offering a more holistic view of consumers, PRISM increases approval rates for a similar level of risk while reducing fraud. It has comprehensively transformed how we provide credit and manage risk. With these differentiated capabilities, PRISM has been able to increase incremental eligible approval rates per year through better decisions and has helped Synchrony reduce fraud.

While AI and machine learning are pivotal in navigating the complexities of the digital age, in this instance, their true value comes when combined with the dozens of agile teams working behind the scenes to make this differentiated capability function.

Based on your experience and success, what are the “5 Things To Keep in Mind When Deciding Where to Use AI and Where to Rely Only on Humans, and Why?” How have these 5 things impacted your work or your career?

When deciding where to utilize AI and where to rely solely on humans, it’s important to consider the following:

1. Complexity of Decision-Making: AI excels in handling routine, data-driven tasks, such as analyzing large datasets for patterns or recommending personalized skincare routines based on data inputs. However, for complex decision-making that involves nuance, context, our expertise is indispensable. Human judgment is essential in cases where there are multiple variables to consider, and the decision requires empathy, intuition, or complex reasoning.

2. Emotional Intelligence and Empathy: AI lacks emotional intelligence and empathy, which are crucial in the health and wellness fields. While AI can provide information and recommendations based on data, it cannot fully understand or empathize with human emotions, fears, or preferences.

3. Adaptability and Creativity: AI operates based on predefined algorithms and data inputs, making it less adaptable and creative compared to us. In dynamic environments or situations that require adaptive responses to unexpected challenges, our creativity and flexibility are indispensable. We can think outside the box, innovate, and adapt to new circumstances in ways that AI cannot.

4. Moral Decision-Making: AI operates based on programmed algorithms and data, which may not always align with moral considerations. In fields such as healthcare, law, or decision-making with significant societal impact, our oversight is crucial to ensure decisions are ethical, fair, and aligned with Synchrony’s values. We can consider broader ethical implications, weigh conflicting values, and make judgments based on moral reasoning, which AI lacks.

5. Trust and Accountability: AI can provide efficient and consistent results, but we are ultimately responsible for the decisions made based on AI recommendations. Our oversight ensures accountability, transparency, and the ability to intervene if AI-generated decisions we interpret as incorrect or biased.

When deciding where to use AI and where to rely solely on humans, it’s essential to consider the complexity of decision-making, the need for emotional intelligence and empathy, adaptability and creativity, moral considerations, and the importance of trust and accountability. Balancing the strengths of AI with our unique capabilities leads to more effective and ethical decision-making processes.

Looking towards the future, in which areas of your business do you foresee AI making the most significant impact, and conversely, in which areas do you believe a human touch will remain indispensable?

Human touch will always be an important part of the equation my team’s projects. There are endless possibilities of how AI could impact the consumer journey. We are particularly interested in how AI and Gen AI could enhance the discovery phase of a purchase. For example, how could it make searching for products more interesting and accurate? Every so often a new technology comes forward as an “enabler” — one that will create opportunities across the spectrum. Gen AI has the potential to improve everything from the employee experience to the products our consumers use every day.

Beyond a recommendation suggestion, we see AI chatbots augmenting a purchase with a good conversation with consumers to gain insights about their shopping experience and patterns and the potential to cross-sell other products and services.

We are also really paying attention to the area of immersive reality with new AR/VR hardware coming on the market. This starts to open a whole new set of experiences for consumers for how they engage and how they shop. At Synchrony, we’re looking at how that could change where financing fits in.

How can our readers further follow your work online?

You can follow me on LinkedIn at https://www.linkedin.com/in/rachelemoore2022/

This was very inspiring. Thank you so much for joining us!

About The Interviewer: Kieran Powell is the EVP of Channel V Media a New York City Public Relations agency with a global network of agency partners in over 30 countries. Kieran has advised more than 150 companies in the Technology, B2B, Retail and Financial sectors. Prior to taking over business operations at Channel V Media, Kieran held roles at Merrill Lynch, PwC and Ernst & Young. Get in touch with Kieran to discuss how marketing and public relations can be leveraged to achieve concrete business goals.