Artificial intelligence in finance:
Artificial intelligence is the stimulation of human intelligence processes by machine’s, especially computer systems.
Artificial Intelligence in Finance sector:
The world of financing and banking is among those finding important ways to leverage the power of this game – changing technology.
Artificial intelligence has streamlined programs and procedures, automated routine tasks, improved the customer service experience and helped businesses with their bottom line.
According to Forbes, 70% of financial firms are using machine learning to predict cash flow events, adjust credit scores and detect fraud.
Artificial Intelligence in Service Sector:
Artificial Intelligence is used as a component in a service system, it is subject to the overall development phrases of that service system. However, there are activities specific to artificial intelligence and machine learning that advantages highlighting.
It is also used by an organization to deliver or to manage services. That includes almost all economic activities. For those who think the delivery of service is something different from the manufacture of goods, recall simply that the act of assembling or to transform a raw material to create a good is simply another type of service.
Examples Of AI in finance and banking
- Risk Assessment:
Banks and apps are using machine learning algorithms to not only determine a person’s loan eligibility, but also provide personalized options, according to ” Towards Data Science”.
AI isn’t biased and can make a determination on loan eligibility quickly and more accurately.
- Risk Management:
Machine learning can help experts use data to ” pinpoint trend, identify risk, coserv manpower & ensure better information for future planning.
- Financial Advisory Service:
Artificial intelligence algorithms can analyze a person’s portfolio ( or the latest trends or most types of relevant financial information) so that you can receive the information you need as quickly as possible, according to Forbes.
4.Preventing Cyber Attacks
Customers want to be reassured that banks and financial institutions will keep their money and personal information as safe and secure as possible, and artificial intelligence can help.
It’s estimated that upto 95% of cloud breaches are caused by human error. Artificial intelligence can boost company security by analyzing and determining normal data patterns and trends and alerting companies of discrepancies or unusual activity.
- Enabling 24/7 customer interaction:
Thanks to artificial intelligence and the prevalence of virtual assistants and chatbots, customers can ask questions at all hours of the day and night and don’t have to wait to speak with a person.
AI is making them more productive, making them better at solving the problem. This means ” virtual assistants can respond to customer needs with minimal employee input” according to AI News.
Artificial intelligence areas of research
Artificial Intelligence was first proposed by John McCarthy in1956 in his first academic conference on the subject. The idea of machines operating like human beings began to be at the Centre of scientists’ minds and whether it is possible to make machines have the same ability to think and learn by itself was introduced by the mathematician Alan Turing. Alan Turing was able to put his hypothesis and question into action by testing whether ” machines can think?” After a series of testing called the “Turing Test”. It turns out that it is possible to enable machine’s to think and learn just like humans. Turing test uses the pragmatic approach to be able to identify if machines can respond as humans.
Also Read: 5G and Its Influence on Internet of Things
Need of Artificial Intelligence (AI)
Since Artificial intelligence was introduced to the market, it has been the reason for the quick change in technology and business fields. ” Computer scientists are predicting that by 2020, 85% of customer interaction will be managed without a human” [Gartner “,(n.d.)]. This means that human simple requests will depend on computers and artificial intelligence. It is very important to be prepared for AI revelation. just like UAE has by installing a state minister of AI in Dubai.
Artificial Intelligence in finance and investment
AI in the manufacturing industries but AI is already in other business mostly in investing advisor. For example, Robert Advisor who is the fintech technology advisor to general advisor for online investment suggest in wealth management, investment management & financial planning. It is easier for investors to invest & reduce management costs.
AI in investment to find a higher long term return investment. AI will help analyses by scoring all basic factors that affect the price such as valuation and adjust factors according to a market situation to get proper investing ratio regarding risk acceptable level. AI is a piece of important information that everyone should know. In this era, most of our daily life is running by automatic system as well as in investment.
Future of Artificial Intelligence (AI) :
According to the statistics, the AI market is expected to reach $190 billion by 2025. By 2021, global spending on cognitive and AI systems will reach $57.6 billion, while 75% of enterprise apps will use AI technologies. It is being used to find smart solutions to modern problems in almost all the major sectors such as Agriculture, Healthcare, Education and Infrastructure, Transport, Cyber Security, Banking, Manufacturing, business, Hospitality and many more.
According to Forbes, AI is already at work all around us, impacting everything from search results, to online dating prospects, to the way we shop. Data shows that the use of AI in many sectors of business has grown by 270% over the last four years.