Artificial Intelligence (AI) is the simulation of human intelligence demonstrated by Machines. AI is an interdisciplinary wide branch of computer science concerned with building smart machines which typically require human intelligence.
AI is being used for object detection, identification, classification, image recognition and geophysical feature detection. These are the tasks which once required human inputs.
From self-driving cars to SIRI, artificial intelligence (AI) is making headway rapidly.
The rise of AI in financial industries manifests how rapidly it’s changing the business landscape.
Here are few popular examples of how AI is been used in finance-
AI and risk management
When it comes to risk management it is difficult to overestimate the impact of AI. Expansive processing power allows huge data to be handled in short time. Cognitive computing allows t in managing structured and unstructured data whereas algorithms analyze the history of cases and identifies issue. For human these task can be huge time consuming. AI also provides accurate forecasts and detailed predictions which are vital for the protection of businesses.
AI and credit decisions
A recent survey found that consumers prefer paying with debit or credit card compared to the people who prefer cash. AI provides an accurate valuation of a potential borrower at less cost which leads to make better data decision. Credit scoring which is provided by AI helps lenders to distinguish between credit-worthy applicants and high default risk applicants.
AI also help banks and credit lenders to make smart decisions by utilizing a variety of factors. Loan-issuing apps and Digital banks uses machine learning algorithms to evaluate loan eligibility and also provide options.
AI and fraud detection
Every day, huge quantity of digital transactions take place as users move money, deposit checks, pay bills, trade stock and more through online applications. The need of fraud protection and cyber-security is a necessity for every financial institution and AI is plays a key role in maintaining the security for online finance.
AI is very effective at preventing online finance fraud. Banks employ AI to reveal and prevent financial crime like money laundering. These Machines recognize suspicious activity, and helps to cut down the investigation cost. Plaid is one of the tool which works with financial giants and helps in fraud-detection.
AI and Personalized Banking
AI shines when it comes to providing new way, additional benefits and comfort to users. In banking sector AI provides comprehensive self help solutions and reduce the executives workload. Voice-controlled virtual assistants and a self education features are gaining lot of attention. Number of application and Tools can track and check balance, payments, spending habits and can also come up with an optimized plan which can provide financial tips and advice.
AI and Process Automation
Industry leaders look for robotic process automation where they want to cut operational costs and magnify productivity. AI makes it possible to automate a variety of task that uses thousand of working hours. AI enabled software’s verifies data, generate reports, review documents and extract information. They also eliminate the room for human errors.