Blog: Artificial Intelligence (AI) — Transform Finance System
Whether it’s legal or helping to automate the process, there is no denying AI has become more commercially variable in Global Business.
In 2018, the business value of AI was estimated to be around $41.1 bn, which includes the cost savings and efficiencies of AI technology. Compared to an existed model of infrastructures and process of financial services.
AI Technology is setting a new level for more competitiveness among vendors in the financial industry. Today, companies embedded AI technologies are head and shoulders above the others, especially in financial systems.
By 2020, Artificial intelligence is introduced into financial management applications:
- AI at financial institutes will lead to job changes, with 1.3 million US workers expected to be impacted since 2020.
- The Asian part of the world expected to be a leader in AI use by 2024.
- AI will be a mixed tool of machine learning, deep learning, and can be used together with blockchain and cryptocurrencies.
- AI will improve transaction — processing efficiency.
- Reduce period — end time.
- AI will predict future results.
WHAT IS ARTIFICIAL INTELLIGENCE?
Above given samples of how artificial intelligence will impact financial business industry shows future development forecast. But, before we will examine where and how they are implementing in daily life, it’s important to define the term.
Artificial intelligence — is a broad and general term that refers to any type of computer software that engages in human-like activities, including learning, planning, and problem-solving.
Currently, business representatives are using different types of artificial intelligence, to learn which is predominant, we have to dig deeper.
Machine learning is one of the most common types of artificial intelligence in development for business purposes today. Machine learning is primarily used to process large amounts of data quickly. These types of artificial intelligence is algorithms that appear to learn over time. More user adds “Data”, all types of related information and its modeling should improve.
For example, last mile delivery company Volt Technology analyze variable Data, such as distance, region, date, holidays, weather for the past 10 years — to calculate the pricing of delivery.
How does it work? The automated pricing for delivery incorporates variable including:
- Delivery date: choice of weekdays or weekends or national holidays
- Weather: the possibility of inclement weather
- Region: Some delivery zones may be more favorable than others
- Choice of transportation to the destination
- Estimation of delivery price depending on transportation and lead time.
The development of artificial neural networks, an interconnected web of artificial intelligence “nodes”, has given rise to what is known as “deep learning”.
Deep learning is an even more specific version of machine learning that relies on neural networks. Deep learning is critical to perform more advanced functions, such as fraud detection. It can be done because it analyzes more wide range factors at once.
For example, creating new solutions for financial institutions, such as virtual assistants. Virtual assistants serve little purpose to users, but they analyze several factors and responds at once.
Deep learning has a great future in business and is likely to be more commonly implemented overall.
Artificial intelligence and global business institutes
Today, artificial intelligence more supporting tool for the business sector, there is no possibilities of job replacement soon in 10 years. Even though artificial intelligence is far more quickly analyzes data and processes it, it is still difficult to replace human in common sense by completing the tasks.
In the financial and business world artificial intelligence changing customer relationship management systems. Such AI platforms transform your data into a self-updating, auto-correcting system that awaken and always process your management system.
Deloitte’s 2018 report says, “Lloyds Banking Group committed US$4.1 billion a year in a digital strategy that positions the company to combine banking and insurance services and pursue new API-enabled propositions. The aim is to be an ecosystem provider and a “trusted guardian of data” in the age of many providers.” and “Companies such as Google and Amazon are using their technological advantage and scale of data to satisfy customers’ increasing preference for engagement and relevant, valuable experiences”.
Commonsense tasks becoming even easier for computers to process. Robots are becoming extremely useful in everyday life.
Today, artificial intelligence surrounds us, even we don’t recognize them cause they don’t look like a stereotype “Robots”.
But, for example, what music to decide to play already today creates playlists based on the interests of the user, advertising boards show your recent visited shops and online stores and selects a category of products based on your cookies.
Future, already here.
Artificial intelligence is the tool for financial services to provide extreme high service in the market to flow on the TOP. The competition for users attention will increase, and new opportunities will be found for more agile innovators and special niche providers.
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