The term Artificial Intelligence (AI) was first coined by John McCarthy in 1956. Artificial Intelligence has taken the financial industry by storm, which has resulted in almost every company present in the financial technology sector to start using AI in order to save time, cut down the cost, and add more value. With the evolution of the global technology in the past few years, we are smoothly adapting the use of AI. More than thousands of companies all over the world are looking at Artificial Intelligence as the next big step in the finance industry.
Few ways of how AI is being used in Finance:
You must be aware that Chatbots are very popular which helps in saving money as they automate the simple tasks like opening a new account for a customer, or transferring money to another account, etc. Companies that are planning to use Chatbots just have to install them on their websites, which means they will always be on whenever anyone opens the website, be it be anytime of the day, and get answers to their questions, and get assisted with their problems. As more financial institutions will be starting to use AI, they will be developing voice applications, which will be needed for recognizing vocal pitches, pronunciations, and accent. Artificial Intelligence has surely made a positive impact on the financial industry by revolutionizing it, and has changed the way we access, analyze and also understand the information.
Time plays a very important role in the finance world as it is directly related to money, which means if it is not given the proper attention, it can difficult to manage the risk. Predicting accurate forecasts are very crucial to both the speed and protection of many businesses. These predictions help experts in the financial industry to utilize the existing data in order to recognize the trends, identify the risks, conserve manpower and ensure that the information has positive outcomes in the future. This is why financial markets are relying heavily on AI.
Fraud Detection and Management:
It is a prime concern for every business to reduce the risk conditions that surround it, and the same goes for financial institutions as well. Whenever you go to a bank to apply for a loan, it is basically someone else’s money, which is why you also get paid an interest on deposits and dividends on investments. This is the reason why they take fraud very seriously. Artificial Intelligence plays a very specific role when it comes to security and detecting fraud. AI helps in recognizing the past spending behaviors on different transaction instruments in order to point out odd behavior, such as when a card is used from another country just after a few hours of it being used at another place, or there has been an attempt to withdrawing an unusual amount of cash from an account, etc. The advantage of using AI is that the system learns from experience and makes sophisticated decisions about what is considered as fraud and what is not.
Without doubt, we know that AI is the future for the finance industry. With the speed that AI is making progress in making all the financial processes easier for customers, it is going to replace humans very soon in order to provide a much faster and efficient solutions. Financial institutions are making huge investments who believe that AI will prove to be the long-term cutting-edge investment. It will eventually help companies in saving huge amounts of money that is pent in hiring humans and that will slowly eliminate human errors in the processes. The use of AI in Finance is still very new but it is expected that its prospects will lead to minor losses, smart trading and excellent customer service.