All of us know about artificial intelligence, or AI for short. AI is supposed to make things easier for humans by automating processes that are currently impossible to automate using mechanics (or scripts if we are talking about software). In other words, AI involves a certain degree of “learning” by a machine in order to update its methods for adaptation to any changes in the situation. Learning allows the AI to “think” like humans would and change its way of doing something over time, thus saving more time and producing more efficiently.
Now, for the prime-time question. Is it finally the time for AI to be used in a widespread way in the finance sector?
What does it essentially mean?
Let us first see what will AI in financial services entail.
First of all, AI would mean direct penetration at all levels. It is not like only one sector within the financial services needs or can make use of AI.
Starting from the back office, through the middle office, and up to the front office, AI can be used at any point. Payment management, credit scoring, or web applications for customer interaction – all fields can use a good AI program.
AI will make things swifter and smarter.
How much AI do we have currently?
In the finance sector, we have multiple companies trying out different pilot programs (AI-based, of course) at different fronts. Some are working well, some are working worse than the previous methods, while some are absolute fails.
However, the poor performance is not due to any kind of inefficiency of the AI itself. It is due to our lack of information regarding the development of AI for financial services. We have not yet gained a significant advantage yet. We need more trials and errors and more companies stepping forward for experimenting further and taking the science of AI in finance to new heights.
It will take a while before the science is perfected and used widely. For example, recently Suisse Bank PLC used certain new technologies to make some processes faster for its clients. It took the technologies for a couple of months to be perfected and be ready for worldwide use.
AI’s main role: the big data
Data is the soul of financial institutions. They practically work on data and live off it. Currently, we handle big data using human resources and big data software based on scripts and algorithms that can only be changed if a discrepancy or error is found in the current models. That too has to be done manually and separately for each discrepancy.
AI will ensure that big data is processed the way a company requires or sees fit without human intervention. A Minimal human intervention will be required, of course, to authorize certain changes and monitor the overall process.
Computing resources are getting better and more complicated. More and more businesses are investing in customized computing solutions. It is high time we invested in AI while considering it a part of core computing resources for a financial institution.
It will not only help the companies, additionally, but the clients of those companies will also find swifter, safer, and more accurate results.