Artificial intelligence is being used in financial sector in different ways including fraud detectors, robotic, intelligent process automation and others.
FREMONT, CA: In the present scenario, global technologies are evolving and replacing humans in all sectors. The world has evolved from television to the internet and today smoothly adapting Artificial Intelligence. In 1956, John McCarthy first coined the term artificial intelligence (AI), but now it is ruling several industries.
Basically, there are two types of AI:
• Weak AI: It is also described as Narrow AI, and it is used to set up only to accomplish a particular task. It is designed in such a way to solve definite problems and works according to the rules that are set. Weak AI is more like a human mind and has the capability of all cognitive functions. Apple’s Siri and robots which work for companies are some of the examples of weak AI, and their intelligence level is restricted to providing solutions to problems that the system is programmed for, anything beyond that cannot be accomplished by it.
• Strong AI: It is commonly known as full AI and has much bigger prospects than the weak AI. It is so powerful and has understanding power and consciousness, and that can also precisely mimic the human brain.
As most of the companies start looking for features such as machine learning, personal assistants, or digital labor, it is predicted that AI will replace humans soon. AI has begun ruling all the industries, including education, marketing, manufacturing, and financial sector. If we talk about the financial industry, AI can serve several purposes, including auditing of financial transactions, analyzing a number of pages of the tax changes, fraud detection, and others.
Here are some of the ways AI has transformed the finance industry:
1. Risk Assessment
It is evident that AI is learning from past data, so it is very clear that AI will succeed in the financial services sector because here, bookkeeping and records are second nature to the business. For instance, the credit score is used to decide who is eligible and who is not for a credit card. So, sometimes it becomes a tough job for the employees to maintain a correct record and to group people into ‘haves’ and ‘have-nots.’ In such cases, AI and ML can replace humans as a human analyst commits several mistakes and inaccuracies. This new technology will not only change the way of doing business but also non-commercial activities.
2. Fraud Detection And Management
Fraudulent activities are becoming common in the finance industry, so all the companies aim to reduce the risk conditions that surround their team. AI plays a significant role in security and fraud identification. Sometimes it becomes difficult for the workers to detect all the frauds accurately, so in such cases, AI can properly do fraud detection and can save the company from risky activities.
3. Financial Advisory Services
Now robots can give financial advisory services to the organizations. Financial institutions have to face the pressure of reducing their rates of commission on individual investments, and here machines may do what humans don’t- work for a single down payment. An outstanding balance and the capability to look at AI as a piece in decision-making that is as important as the human viewpoint is the future of financial decisions.
4. Managing Finance
Most of the companies find it hard to handle finances in the materialistic world, but AI can help to manage the funds properly. Personal Financial Management (PFM) is one of the developments on the AI-based wallet. Ai is the future for the finance sector as from a small-scale investment to a large scale investment AI commits to be a watchdog of the future for managing finances.