Fairy tales and fiction literature have long been a source of inspiration for technological developments, including Artificial Intelligence (think of the Tinman from The Wizard of Oz or Maria from Metropolis). This century’s fast-growing pressure prompted people to imagine technologies that could fix their issues and alleviate their stress.
Open online courses (MOOCs) like Coursera and Lynda are becoming more and more popular each year due to AI. Artificial Intelligence has made it possible to achieve these goals in education. Thanks to automatic grading, many people’s lives and professions have been transformed by the availability of self-taught online courses.
The phrase “artificial intelligence saves lives” is not just a metaphor. Doctors use artificial intelligence (AI) in various ways, from robotic surgery to virtual nursing aides and patient monitoring. Human labour costs are being reduced via image analysis and various administrative activities such as filing and charting, allowing doctors to spend more time with their patients.
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5 Use of Artificial Intelligence in the Financial Sector
The increasing use of artificial intelligence in the financial sector shows how swiftly this technology transforms the business landscape, even in traditionally conservative sectors.
Just a few examples of AI in finance are listed here.
1. Credit Decisions in the Age of AI
Using AI, a lender can make a more informed, data-backed judgement on whether or not to lend to a potential borrower more quickly and at a lower cost. Compared to traditional credit scoring systems, AI-based credit scoring relies on rules that are more complicated and sophisticated than those utilized in traditional systems.
It helps lenders identify between applicants who pose a significant risk of default and those who are creditworthy but do not have a long repayment history.
2. Applied Artificial Intelligence in Risk Management
When it comes to risk management, it’s hard to exaggerate the influence of artificial intelligence (AI). Cognitive computing helps manage structured and unstructured information, a task that would take a human significantly longer to accomplish.
This is possible because of the massive processing capacity and cognitive computing. Algorithms use data from previous risk instances to predict future problems.
3. AI and Fraud Detection
AI has been a huge success in the fight against financial fraud for several years now, and the future is looking better every year as machine learning keeps up with the criminals.
As e-commerce and online transactions continue to grow, so does the risk of credit card fraud, which AI can help prevent. Customer behaviour, location and purchasing habits are examined by fraud detection systems and activate a security mechanism when something appears out of place or violates established spending habits.
4. AI and Trading
There has been a steady rise in AI and trading data-driven investments over the past five years, reaching a trillion dollars in 2018. Automated, quantitative, or high-frequency trading is another term for this type of trading.
The use of artificial intelligence in stock trading is on the rise, and for a good reason: the technology offers numerous advantages.
Structured (databases, spreadsheets, etc.) and unstructured (social media, news, etc.) intelligent trading systems may monitor data in a fraction of the time it takes by humans. Faster processing leads to faster judgments, which leads to faster transactions. This is especially true in the world of trading.
Algorithms may test trading systems based on prior data and raise the validation process to a whole new level before putting them into use.
5. AI and Personalized Banking are included in this section
When it comes to finding innovative ways to improve the lives of individual users, artificial intelligence shines.
AI underpins the smart chatbots in the banking industry that provide customers with comprehensive self-help solutions and reduce the strain of call centres.
Voice-activated virtual assistants such as Amazon’s Alexa are gaining acceptance quickly, which isn’t surprising given that they include a self-education function that makes them smarter every day.
Both tools can check balances, schedule payments, and view account activities.