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Artificial Intelligence (AI) in financial services

With big data software companies and cloud providers using up a large amount of data, there has been a substantial increase in the practical application of AI.

Artificial intelligence is already being applied in a lot of fields to perform specific tasks such as medical diagnosis, remote sensing, electronic trading and robot control. Financial institutions have long used an artificial neural network to detect system changes and abnormal claims while alerting and flagging them for humans to investigate.

Many banks are making use of artificial intelligence systems to maintain book-keeping, organize operations, manage properties and invest in stocks. Artificial intelligence defined as a theory and development of computer systems to perform tasks normally associated with humans such as decision-making, visual perception, and speech recognition has been in existence for a long time. With advancements in computational hardware, big data, and machine learning, artificial intelligence is becoming more powerful and useful every day.

Recent advances in artificial intelligence have ushered in a new era in finance and within a short period, big data and machine learning have yielded breakthroughs that resulted in improved customer experience and productivity.

Software plays a huge role in this breakthrough and there remain a lot of challenges to solve. There is a need for software to be designed and optimised to fully take advantage of the features of the underlying hardware to improve performance. There is also a need for libraries, frameworks and other tools to be streamlined in other to accelerate the development process. Some of these problems have been solved because of the advances in GPU.

Here are a few areas in finance that artificial intelligence is already having an impact:

  • Predict and plan the way customers manage their money thus making AI an integral part of the business development strategy.
  • Smart machines turn data into customer insights and improve services transforming the digital experience. By utilizing complex algorithms and machine learning, AI can process thousands of structured and unstructured data points and because finance professionals heavily depend on data, this capability can significantly impact how they do their jobs.
  • Auditors feel free of responsibilities due to the automation potential provided by artificial intelligence. They are using AI to automate time-consuming and manual activities, giving them time to focus on other important work. AI can help auditors review contracts and documents faster by employing machine learning technology that can find key phrases from documents that take a lot of time to decipher or interpret. Currently, AI can process language in a document and produce relevant results, this has played a crucial role in improving productivity.
  • Data-driven management decision at low cost is ushering in a new style of management and in the future, managers will be able to question machines instead of human expert. Machines will analyze data and make a recommendation on how team leaders will base their decisions.
  • Embedded applications in end-user devices and financial institution servers can analyze a large volume of data, providing customized forecasts and financial advice. Applications like this can also help to track progress and develop financial plans and strategies.
  • Personalisation is a major area where many banks are already experimenting with various ways to match services and products for customers. AI can help customers simplify the money management process and make a recommendation for an upgrade by matching algorithms.

In conclusion, financial service providers need to pay attention to AI as technology continues to evolve and become more mainstream. The way businesses innovate and implement major strategies is shifting, organizations need to embrace AI in other to fully take advantage of the trend.