The advent of artificial intelligence has already proven to change every industry and the way businesses function. The finance and funds procurement industry is no exception to this new technology. AI has changed the way businesses handle finances and procures funding.
Here are the three major disruptions that are shaking up these industries:
1. AI integration
All major banks and financial institutions are working toward full integration of their platforms with AI. With the help of algorithms, banking apps use financial data to calculate credit scores and to provide alternative funding options. For banks, these algorithms provide insight on the company’s financial strengths and help to determine the company’s credibility. Besides that, as part of their premium services, these platforms also offer financial advice and maintain financial records of transactions and other reports.
2. Business service platforms
There are many moving parts of running a business and many of the most important ones happen behind the scenes, or beyond the customer’s point of contact. Thanks to advancements in technology, multi-level platforms now exist. These platforms analyze data at various levels to prepare insights on the company’s overall finances and profitability, calculate various accounting ratios, and analyze the company’s financial statements and reports.
Another level to these service platforms is the increase in automation. Automation of activities reduces the time spent on doing them and helps to cut down costs that would have otherwise been incurred. Most importantly, automation reduces a company’s probability of error in such statements and documents. With automation, the work is completed effectively and efficiently.
Additionally, with AI integration, these platforms can now behave like real analysts and provide predictions as well as suggestions for improvement.
3. Blockchain mechanism
Blockchain mechanism is a way to encrypt important information to avoid hacks and leaks. It is generally used for data that is highly sensitive or that involves intellectual property rights and trade secrets, allowing companies to keep such information protected.
The world is halfway through the digital revolution. Slowly and steadily, technology has become an important and unavoidable part of our lives and businesses. Just a few decades ago, having an IT department in a company was considered a big deal; but now, IT is a valuable department.
Trends such as AI and machine learning have caught on and are disrupting industries one by one. Even banking has transitioned from simple paper currency to plastic and from that to infrared sensory exchanges between e-wallets on mobile devices to receivers at offline counters. It is vital for businesses to understand the importance of staying up to date on the latest trends and incorporating changes and improvements into their businesses.
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