Artificial Intelligence came into our lives from reading fiction books and fairy tales, like the Tinman from “The Wizard of oz.” or Maria from “Metapolis.” People dreamt of machines that could solve problems and relieve some of the pressure of the modern world.
Around 70 years since the term AI was first coined, it has become integral to some of the most demanding industries. Business owners and executives are constantly looking for new ways to use AI to gain a competitive advantage. We often don’t realize how much AI is used daily. AI is changing the way financial services are conducted.
Credit Decisions
Through the use of AI, a potential borrower can get a better and more accurate credit score at a lower cost. It can also account for various factors that affect a person’s credit history, helping lenders distinguish between those who are credit-worthy and those who are not.
Risk Management
AI is becoming more prevalent in the financial services industry, as it allows banks and other financial firms to manage massive amounts of data quickly. With the help of cognitive computing and massive processing power, AI can analyze and identify potential risks before they become a problem.
Fraud Prevention
For a long time now, AI has been able to fight financial fraud successfully. Due to the advancements in machine learning, it is expected to become even more effective in the future. Due to the rise of online transactions and e-commerce, credit card fraud has been increasing significantly. With the help of AI, fraud detection systems can analyze a person’s behavior and identify potential risks before they become a problem.
Trading
The amount of money being invested in data-driven trading has been increasing steadily over the last few years. This type of trading is becoming more prevalent in the stock markets, as it allows investors to benefit from the multiple advantages of artificial intelligence.
Personalized Banking
The potential of AI to provide new and innovative ways to improve the lives of individuals is immense. In the financial services industry, AI is being used to develop chatbots that can provide various self-help solutions while reducing the call center’s workload. Also, virtual assistants, such as Amazon’s Alexa, are gaining popularity. These tools can perform various tasks, such as checking balances and making payments.