Artificial intelligence (AI) is now being used in all sectors, helps to streamline operations, consolidate information and data and spot suspicious behavior. AI is particularly impactful in the finance industry. It’s changing everything, from financial planning to fraud prevention to the underwriting of loans.
The most common use cases for AI in finance is automating repetitive, high-frequency tasks in order to reduce human error and free resources to focus on other strategic tasks. Automating processes using robotics for instance, can cut costs and manual data entry by up to 50%-70 percent. AI can also aid in accelerating market research, forecasting the growth of investment and evaluating risk by identifying data that is not normal and ensuring uptime with robust IT management alerting users to potential issues via real-time notifications.
Other uses for AI in finance include the prevention of financial crime and cyberattacks. Fraudulent transactions can result in billions of dollars in losses every year, and AI is a game changer as it can analyze large amounts of data quickly to spot suspicious patterns. AI can identify fraudulent transactions by applying deep learning and other sophisticated algorithms. For example, when the request for a car loan is found to be in violation with the company’s guidelines.
AI is also a crucial component in providing 24/7 support to customers, assisting them to navigate financial services with the help of chatbots and voice. AI-powered virtual assistances let customers access account information, view the history of transactions, and gain customized insights by simply asking simple questions using natural language. Furthermore, these assistants are able to offer individualized and proactive suggestions regarding additional savings or investments or insurance.