Cathay Financial Holdings is implementing open-source small language models (SLMs) to better understand customer needs and improve service delivery. The initiative aims to increase operational efficiency by accurately identifying customer intent across various interactions. Unlike larger, more complex AI models, SLMs offer a cost-effective and adaptable solution for specific tasks. Cathay FHC believes this technology will allow for more personalized and responsive customer service. The company has not disclosed specific details regarding the SLMs utilized or the scope of their implementation. This move reflects a growing trend within the financial sector to leverage artificial intelligence for enhanced customer relationship management and streamlined processes. The deployment is expected to yield improvements in areas such as customer support and targeted financial product offerings.