How TIAA Puts AI At The ‘Fulcrum Of Everything’

While the AI boom may seem to have happened unexpectedly, many enterprises were hard at work on internal AI and machine learning projects well before the release of ChatGPT ignited the current frenzy.

For example, the Teachers Insurance and Annuity Association, or TIAA, started exploring how they could deploy AI into client services operations several years ago. Now, the pace of adoption is only accelerating.

An in-house AI agent is simplifying the hundreds of hours of research its portfolio managers must do every week for institutional investors. The technology is helping protect consumers from fraud — particularly elderly clients and those on the cognitive decline. An AI agent helps TIAA’s representatives engage with customers with greater empathy. AI agents even monitor responsible deployment of other AI workloads.

“We've been using AI in the OG format,” Chief Operating, Information and Digital Officer Sastry Durvasula said on a recent episode of the “CIO Leadership Live” podcast. "Fast-forward, post-ChatGPT, it’s been the fulcrum of everything we've been doing."

Founded by Andrew Carnegie over 100 years ago, TIAA’s core business is helping those in the education, healthcare, and government sectors with financial services support, including retirement plans and investment advice. But the company is also significantly expanding its global asset management business, which today already manages over $1 trillion in assets.

And a key part of this growth will come from investments in digital and AI technologies, according to Sastry. TIAA relies on what Sastry refers to as a “three-legged stool” approach to AI development and deployment: Power business growth, fuel innovation to delight customers, and strengthen the core of operations.

“That’s the strategy for the company. That's the strategy for technology, digital operations. That’s the strategy for AI,” he said.

In the podcast episode, Sastry detailed several of TIAA’s most impactful AI use cases to-date, including: ‍

• Real-time fraud intervention: The company can now intervene in real-time when fraudsters call a participant and impersonate a TIAA advisor. “AI is doing the job before the fraud analyst is engaged, and alongside the fraud analyst as we go through the case,” said Sastry.
• Acting with empathy: When a customer calls in with a complaint, or is navigating a tough financial situation, its critical TIAA employees respond appropriately: “We need real, empathic communication,” Sastry said. To help, TIAA built an AI agent that can draft communications, edit copy, and provide prompts to service representatives on what to say next. While the product is still in the early stages, the results are promising, according to Sastry.‍
• Opening up new possibilities for growth: As TIAA’s products reach a wider set of customers, portability is a top concern. For example, TIAA Gateway enables more seamless data sharing across different platforms. Meanwhile, AI is poised to play a "significant role” in helping the company tackle the $9 trillion opportunity in the 401(k) market, Sastry said. ‍
• A one-stop intelligence shop for TIAA employees: MYGATE, an internal AI agent that relies on multiple LLMs, serves as a unified home for information that employees need: There’s a “fundamental believe that this is going to transform how we operate as a firm and drive efficiency and free up time to focus on upskilling,” said Sastry.

Listen to the full podcast episode here.