A brief on what the present and the future of AI hold for our financial reality.
Artificial intelligence is no longer something you come across only in video games or science fiction. It’s been here for quite some time, and it’s most definitely taken the world by storm. Nowadays, you can find traces of AI in pretty much every sphere under the sun. Below, I’ll elaborate on how AI cemented its presence in financial services.
Cost reduction is always in the back of the mind of world-class marketers. And for a good reason. AI can quickly complete mundane, repetitive tasks, allowing employers to allocate their workforce for meaningful jobs.
It is often used in loan taking. To take out a loan, one fills out a secure online loan application on a lending platform such as GetCash.com, and AI then takes over, extracts the data, analyzes it, and matches borrowers with vetted lenders. Because loan applications are processed with lightning speed, loans usually get approved within 24-48 hours.
AI has also cemented a fully analytics-driven approach in the practices of most insurers today. The usage of AI includes but is not limited to identifying fraudulent claims, automated claim processing, and the introduction of new digital services.
Cape Analytics, for once, utilizes geospatial data to provide insights for insurers. They then can write better policies and offer ideas on how to protect property. Astoundingly, the geospatial data undergoes conversion within mere seconds.
Objectivity is what distinguishes AI. Artificial intelligence helps tell the difference between high default risk borrowers and credit-worthy applicants whose credit history happens to be somewhat insufficient.
Another perk of employing AI is having it perform a more accurate and much faster assessment of potential borrowers. It often covers numerous factors, making up for a well-informed decision backed by data.
Interestingly, the usage of AI doesn’t end there. Loan-giving apps and digital banks tend to incorporate machine learning algorithms in evaluating loan eligibility and personalizing one’s selection.
Artificial intelligence has been working hand in hand with cybersecurity for quite some time now. What’s more, many companies have employed machine learning in the last few years following the spike in e-commerce.
Credit card fraud is among the areas AI has been assisting with. Specially designed fraud detection systems analyze the consumer’s behaviour, location, and spending habits, and, should anything seem off, they trigger a security mechanism.
Processing power is hands down one of the most significant advantages of employing AI. When it comes to risk management, AI helps process large volumes of data, with cognitive computing managing both structured and unstructured data.
Algorithms are set to analyze the risk cases and identify potential issues. Thanks to the AI, the analysis of real-time activities is executed with an all-time high precision and is grounded on numerous variables, making it invaluable for high-level financial planning.
What Does the Future Hold For AI in Finance?
As blockchain and cryptocurrency define our financial reality, AI will most likely proceed with securing transactions and accounts. Another thing we could expect is a significant improvement in digital assistants and apps prompted by the continuous development of cognitive computing.
Better customer care also seems to be on the horizon. Natural-language processing could help personalize the feedback consumers receive, eliminating common frustrations and setting the ground for next-level transparency.
The debate on whether to adopt AI broadly seems to have run out of fuel. The verdict is there, and it doesn’t seem to be doubted much these days. One either gets on board with the increasingly powerful technology or counts its days in the digital realm by opposing its adoption.
Whether in healthcare or lending, machine learning eases the pressure imposed on the average worker when implemented and configured correctly and creates a unique environment of invention and creativity. Let’s buckle up as we’re in for a wild ride!