Artificial Intelligence: A Revolution in Finance
The artificial intelligence (AI) revolution has begun, and financial services will be first in-line to be affected by the changes.
Emerging artificial intelligence (AI) technologies are set to have wide-ranging implications for the financial services industry. The use of AI in finance is not new, and banks are currently using software to help perform routine data analysis and detect simple errors. But the days of AI hiding in the back-office are coming to an end, and soon, many banks and other financial institutions will be leading with AI interfaces to engage with their clients.
The recent push into AI has been driven not just by cost savings expectations, but by the coming-of-age of millennial investors, and the growing comfort with automated services. Over the past several years, the rise of so-called “robo-advisors” have shown the willingness of investors to adopt an AI-based technology to handle financial management. Already, robo-advisors have had a tremendous impact on the industry and are primed to hit $2 trillion in assets under management by 2020.
Even while advancements in AI continue to be made within finance, improvements achieved in other industries are having an effect as well. With speech-directed personal assistants like the Amazon Echo getting better with every iteration, several financial institutions have been able to integrate speech-activated banking services, such as balance checks and money transfers. These capabilities drive customer engagement and create more outlets for institutions to provide better and more timely service. As AI continues to pervade every facet of the economy, the opportunities for improved efficiency, accuracy, and client engagement will push development in the financial services industry for years to come.