The finance sector can benefit from artificial intelligence in more ways than one.
Artificial intelligence might not be the first thing that comes to mind when you think of improvements to the finance industry, but it aims to become a profit center.
The concept of incorporating artificial intelligence in finance might cause you to think about robot bankers counting money and inputting financial details into a computer. However, AI is really just one more form of automation in an industry that already heavily relies on automation. ATMs automate teller services and computing programs automate bank balances which allow for users to check their accounts on mobile devices rather than having to keep track of everything in a checkbook. Investors use automated reports to help them understand the market. Financial services already depend on innovative automated technology, and AI is an extension of the processes that have helped to create a more efficient and accessible finance sector.
Artificial Intelligence in Financial Services
Some financial sectors that are already including AI in a significant way include the insurance and mortgage industries. Both getting insurance and applying for a mortgage can include gathering and assessing a lot of complex information. Using algorithms and machine learning, AI software features can help to both assess risk as well as manage repetitive processes on the back end, including completing and filing claims and applications.
Artificial Intelligence in Wealth Management
Some wealth management groups and investment firms are already implementing basic AI to help advise prospective clients on initial investments. As AI grows, it has the potential to help firms manage risk more effectively, creating more wealth for both the clients and the companies.
A former corporate CIO, Oliver Bussman, told American Banker, “With AI you can scan the available market data and understand events and triggers that change the market situation and potential performance of certain sectors, certain stocks. It’s all about the ability to process a huge amount of data, define the rules and drive the right rules.”
Data is critical to investment and wealth management industries, so using AI to intelligently sort through that data faster and more accurately could be a crucial innovation in finance.
Recent Innovations in the Banking Sector
One application of artificial intelligence in banking is fraud detection. Because a crucial part of AI technologies is the ability to learn based on patterns and behaviors, it can more easily and accurately assess fraud.
Another exciting AI development is chatbots. Chat features are an important customer service feature for many sites, allowing customers to ask specific questions and receive prompt service. Many banks have dedicated customer service representatives to handle specific kinds of inquiries, but the growth of AI means that chats can be staffed by artificial intelligence that can access customer information and learn from the questions of other customers, allowing for an experience that offers a seamless and customizable customer experience.
AI in finance can be another successful financial innovation, helping both customers and companies save time and money. Financial service organizations should be aware of how this growing technology can be applied to their business to help them gather data, understand their markets, and be more productive and profitable. More than a replacement for human intelligence, artificial intelligence can work in tandem with people to provide better customer experiences.