Artificial intelligence (AI) plays a very large role in the financial field, which can help with data analysis, performance evaluation, real-time computing, customer service, intelligent data retrieval, and more. AI is a family of technologies that enable financial services organizations to better understand markets and customers, analyze and learn digital pathways, and interact in a way that mimics human intelligence and interaction at scale.
However, despite the powerful tools that AI provides, it cannot completely replace the role of humans in the financial sector. Some complex financial decisions require human expertise and experience, such as hedging managers using complex mathematical models and algorithms that require humans to understand economic and market trends and consider various factors. In addition, the financial sector involves a plethora of legal, compliance, and ethical issues that require human expertise and judgment to deal with. Therefore, a combination of artificial intelligence and human expertise may be the best way to make financial decisions.
AI in finance can help in five areas: personalizing services and products, creating opportunities, managing risk and fraud, improving transparency and compliance, and automating operations and reducing costs.
How AI solves real challenges in financial services
Speech recognition
Transcribe speech to text to gain insights into customer interactions, such as contact center sales calls, and improve service and drive a better customer service experience.
Sentiment analysis
Use natural language AI to identify sentiment tendencies in a given text, such as investment research, chat data sentiment, and more.
Anomaly detection
Detect anomalies such as fraudulent transactions, financial crimes, deception in transactions, and cyber threats.
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Highly personalized recommendations for financial products and services, such as investment advice or banking, based on customer journeys, peer interactions, risk appetite, and financial goals.
Translation
Enhance customer engagement and reach a wider audience with scalable, fast, and dynamic machine translation that enables content such as financial information and apps to be available in multiple languages.
Text processing
Extract structured and unstructured data from documents and analyze, search, and store it for high-volume document processing processes such as loan servicing and investment opportunity discovery.
Identification
Accelerate insurance claims processing by assessing damage to property, such as property or vehicles, and gaining insights from images and**Or speed up the onboarding process for customers through KYC-compliant identity document verification.
Conversations
Delight your customers with AI-powered contact center experiences, such as bank concierge or customer center, while reducing costs and freeing up time for human agents. Transform your personal finances by providing smart, intuitive experiences for apps,** digital platforms, and virtual tools to give your customers more ways to manage their finances.
Data Analysis & Science
Provide a complete set of data management, analytics, and machine learning tools to derive insights from data and unlock the value of business intelligence and decision-making.
Models
Leverage customer, risk, trading, investment, or other data insights to deliver specific future outcomes with high accuracy. These capabilities help with fraud detection, risk reduction, and future customer needs.
Cybersecurity
Automate cybersecurity by continuously monitoring and analyzing network traffic to detect, prevent, and respond to cyberattacks and threats.
Generative ai
Build new AI-powered search and conversational experiences by creating, recommending, synthesizing, analyzing, and interacting in a natural and responsible way.
What are the intentional changes that AI is bringing to the financial industry?
Automated AI
It can help automate workflows and processes, work autonomously in a responsible manner, and enhance decision-making and service delivery. For example, AI can help payment service providers automate cybersecurity by continuously monitoring and analyzing network trafficOr enhance your bank's customer-centric approach by providing a more flexible, personalized digital banking experience to meet customer needs faster and more securely.
Precise
AI can help financial services organizations control manual errors in data processing, analytics, document processing, onboarding, customer interactions, and other tasks through automation and algorithms, following the same process every time.
Efficiency
When AI is used to perform repetitive tasks, people can focus on more strategic activities. AI can be used to automate things like verifying or summarizing documents, transcribing calls, or answering customer questions such as "What time do you guys close?").and other processes. AI robots are often used to replace humans in routine or low-touch routine tasks.
Speed
AI can process more information faster than humans and discover patterns and relationships in data that humans may miss. This means faster insight into the factors driving decision-making, deal communication, risk modeling, compliance management, and more.
Innovation
The ability to quickly analyze large amounts of data can lead to unique, innovative products and services that outperform competitors. For example, AI is being used for analytics to modernize the insurance customer experience while maintaining the human touch.
AI in the future of financial services
AI will help drive growth in financial services. Many organizations have gone digital and learned new ways to be more effective in sales and focused on data. AI plays a key role in driving customized customer responses, earning customer trust by providing safer and more reliable product and service recommendations, and by broadening the scope of service when it's needed most.
In addition, one person and one sentence to cheer for graduate school financial institutions need to build strong and unique digital customer profiles, but the required data may exist in silos. By breaking down these silos, applying an AI layer, and leveraging human interaction in a seamless way, financial institutions can create experiences that meet the unique needs of their customers while scaling effectively.