Global Technology has grown by leaps and bounds. Just look at the vast development. It has moved from television to internet. In recent times, the transition is happening to Artificial Intelligence, deep learning and many more. Artificial Intelligence and Machine learning are the recent buzzwords in business circles. The scope covers a wide range. For example, ranging from automation of robots to brilliant supercomputer machines. In this article, let us focus on Artificial Intelligence in Finance Sector.
The advantage of AI is that it can identify patterns among huge quantities of data. Many businesses have jumped on the bandwagon to make use of AI in their respective companies. There are two types of Artificial Intelligence.
Weak AI:- Weak AI, as the name suggests, can only fulfil particular tasks. It can help fix many complex problems without an error. In fact, it works as per the design made by a Human brain. These artificial intelligence applications do not go beyond the general rules. It can never surpass the human brain. If you want the best example of weak AI, it is Siri from Apple. It can converse with humans, but will operate in a specific manner. But it can provide solutions to problems they can handle. They cannot devise solutions for a problem that is beyond their capability. You can also take the example of chatbots in customer care service. They can handle simple queries, and the complex ones get routed to an individual.
Strong AI:- It has a bigger prospect than the weak AI. It has a capability similar to the human brain. This AI can take the best decision in times of crucial situations. similar to humans. Through cognitive functions, they can solve problems better than the human brain.
Artificial Intelligence In Finance Sector
The financial sector has welcomed the artificial intelligence with open arms. In finance, chatbots, machine learning and personal assistant are used for completing tasks. It is because of analysis of big data, that AI has assumed great significance. Yes, there is a talk of AI replacing humans but it is the distant future. And there are also challenges such as biases, lack of trust and concern about security.
So, what are the benefits of having Artificial Intelligence in Finance Sector?
Mention finance, and you remember financial transactions. When an auditor has to go through many pages, then AI is the best option. In the future, AI applications can take decisions in a smart way. But the challenges remain of maintaining the right balance between humans as well as machines.
- Let us see how AI can transform the Finance Industry
Just for a moment, visualize. The very concept of AI is analyse and make decision from past data. This is the main reason for success of AI in financial sector. The bookkeeping and records hold major key to any business. Will we take the example of credit card? To get a credit card, you should have a decent credit score. But in the future, a bank will look into the number of debit and credit cards an individual will have. Then they will make recommendations on the interest. Now, only AI can have the application to go through hundreds of personal transactions. For humans, it will take a entire day.
- Detection of Fraud
If you have a business, then there will definitely be risks. The same applies even for a financial enterprise. If you have taken a bank loan, then there will be interest to pay every month. The main reason, why banks and other financial enterprise take fraudulent activities seriously. So, where does AI fit in these activities? Once uploaded with relevant data, it can detect unnatural patterns of withdrawal of money and issue an alert. Let us imagine a situation. Your friend has gone on a journey and has had his credit card stolen. Now, the thief has cracked open the PIN and is using the card. The AI will detect unnatural withdrawals and can issue a red alert. In cases, a human being corrects the alerts, then it will have to be fed with new applications to determine the fraudulent patterns.
- Financial Advisory Services
There are many financial institutions, and employees receive commissions for a new investment. Imagine the same job taken over by a robot. They can do similar kind of jobs continuously for hours. They can compare prices, features and give the best investment option to an individual better than humans.
Imagine the stock market and you remember only the computer with the data going up and down. Usually, profits are made in this sector based on predictions. AI is great because it can give inputs on large quantities of data in a short while. The AI application can be modified to suit individual demands. Based on the AI, a novice can buy or sell stocks. A person with experience can receive alerts about the fall and rise of markets.
- Management of Finance
Money saved is money earned. So, when AI is mixed with your spending, naturally, you can save on earnings and spending. Yes, there may occur occasional instances of privacy breach, but it will be for the better.
Conclusion:- Similar to all new tech innovations, even Artificial Intelligence is facing many challenges. But everyone hopes and know that beneath the challenges lies the huge volume of benefits. The financial processes and transactions will become easy. Bots are the recent trend in the AI sector. Big investment companies are pinning their hopes on AI bots to cut down costs. So, when a bot gets into the workforce, you are saved the money of hiring and training humans. They come with a complete package.
Let us imagine a situation. You are the general secretary of a big apartment comprising 500 families in Hyderabad. You have three big water tanks for daily use. Every six months, you take care to select the best water tank cleaning services in Hyderabad. Now, there are also other expenses to take care of, such as minor repairs. Now, instead of searching for the best handyman professionals from referrals, you can rely on the companies providing home care services in Hyderabad. You can download their app, and place a booking. But maintaining the financial transactions in records is a hectic task. Once AI gets implemented in finance, then every transaction and record can get streamlined. There will be no errors and mismanagement of funds. Being the General Secretary, you can maintain a clean record of every rupee spent in maintaining the apartment.
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