Role of AI in Finance

As global technology has evolved over the years, we have moved from television to the internet, and today we are smoothly and gradually adapting Artificial Intelligence. The term AI was first coined by John McCarthy in 1956. It involves a lot of the main things ranging from process automation of robotics to the actual process of robotics. It has become highly popular among large enterprises today owing to the amount of data these companies are dealing in. Increase in the demand for understanding the data patterns has led to the growth in demand of AI. AI processes are much more efficient in identifying data patterns than humans which is beneficial for companies to understand their target audience and gain insight. Thousands of companies all around the world are looking at AI as the next big thing for the finance industry

1. Better Risk Evaluation:- Powered by machine learning, AI is excellent at finding patterns in data. Credit companies have heaps of information regarding past customers, ranging from demographic and sociographic insights to payment schedule adherence. It follows that these tools can show the risk of default with high accuracy

2. Personalized Customer Care:- The finance industry employs a great deal of support personnel for back-office and customer care roles. These jobs are highly repetitive, require attention to detail, and imply high stress levels that in their turn cause high employee turnover.

3. Automated Trading Platforms:- The rise and fall of the cryptocurrency market brought to worldwide attention the use of high-frequency trading robots. These are built on quantitative trading models which analyze the best trading decisions and zero in on the patterns to replicate them.

4. Process Improvement:- As mentioned earlier, the financial industry uses a lot of additional services, which usually translate into heaps of documents to be verified, classified, indexed, and stored. AI can also help with these tasks.