AI has become a game changer for most companies around the world. The deeper understanding, faster prediction rates, and problem-solving skills have made it one of the most important, revolutionary, and influential technologies.
AI technology in banking, financial, and insurance market was worth $2.5 billion in 2017, and by 2024, it is expected to grow at CAGR of 30 percent. China is leading the way with an estimated CAGR of 40 percent. AI is bound to have a huge impact on human lives as every other innovation in the future. Industries from retail to healthcare use AI tools that make it easier for employees to carry out their jobs. Because of their healthy margins and their ability to benefit from any proprietary edge they could develop against the market, financial service companies were quick to acquire AI technology. AI and ML, together with big data, help computers analyze and predict data.
AI redefines and applies the concept of real-time to finance that helps develop a good relationship with consumers. As AI and machine learning generate and process the financial and non-financial data of individuals, AI connects end users and FinTech companies to interact continuously. AI also helps to assess lenders and debtors in order to accelerate financial service processes and improve customer experience.
AI has its existence for a long time, but it has not seen the light of day, as it was only under the whole theory concept because of the lack of computer power to realize its concept. As data grew, AI began to gain traction in multiple industries. To get the best results from AI, sufficient data and their details such as the source of the data and modification in the data should be available.
In the insurance industry, the use of AI will change the way companies operate. The insurance sector is affected by the multifaceted aspects of AI such as machine learning, data analysis, natural language processing (NLP), robotic process automation, and decision management. Although the technology helps companies grow faster, it also poses risks such as theft of data, security and compliance risks. Companies should know and take the necessary steps to protect themselves from various threats before adopting AI.