The Growing Role of Artificial Intelligence in the Financial Sector

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The Growing Role of Artificial Intelligence in the Financial Sector

By CFO Tech Outlook | Thursday, September 24, 2020

Artificial intelligence plays a vital role in managing risk, and in a fast-paced world like the financial industry, time is money. Algorithms can be used for risk cases to analyze case history and identify any potential problems.

FREMONT, CA: Artificial Intelligence (AI), Machine Learning (ML), and Deep Neural Networking (DNN) have been disrupting businesses and challenging traditional values in the financial industry. AI has had a significant impact globally through numerous and varied applications. The technology has already empowered various day to day activities, from driving to automatically adjusting the thermostat, sometimes, even without our knowledge. Gartner's study revealed that 40 percent of significant businesses would implement AI solutions in 2020, and more than half will double existing implementations in 2020. This forecast was made before the outbreak of the COVID-19 pandemic, and the numbers have only gone up since. In some industries, AI, ML, and DNN have many applications, like the financial industry, where disruptive technologies are challenging the traditional ways of doing business.

Top 10 Artificial Intelligence Solution Companies - 2019Risk Management

Artificial intelligence plays a vital role in managing risk, and in a fast-paced world like the financial industry, time is money. Algorithms can be used for risk cases to analyze case history and identify any potential problems. This involves using machine learning to create precise models that enable financial experts to follow particular trends and notice possible risks. ML in risk management allows powerful processing of large amounts of data in a short time. Both structured and unstructured data can also be handled using cognitive computing. All of this would otherwise result in long hours for human teams to work on.

Fraud Prevention

The massive growth in digital transactions has urged the need for reliable fraud detection models that can protect sensitive data over the last few years. AI can be used to strengthen rule-based models and assist human analysts. This can help improve efficiency and accuracy and reduce costs. The technology can be used to review spending history and behaviors to highlight irregularities, such as a card being used in different global locations within a short space of time. AI also learns from human corrections and applies decisions based on what needs to be highlighted. All use cases in fraud management have different AI algorithms requirements, but each case involves them differently. Transaction monitoring requires a quicker response time, lower error rates and high precision, and training data availability and quality.

See Also: Top Machine Learning Companies

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