Artificial Age – AI is Changing Finance Forever
Over the past month, Generative AI has taken over the world! From GPT3 to Dall-E, Mid journey, and Stable Diffusion, there’s no end of innovation coming from companies like OpenAI. All this innovation has got us wondering… how could AI change finance? So far, the financial industry is expected to save $1 trillion by 2030 through AI adoption. Many banks have implemented AI-based techniques, such as predictive analytics and voice recognition, to improve customer experience. AI in finance is dominated by machine learning, which allows machines to learn and evolve using data without human intervention. AI can also help to reduce the potential for fraud and improve efficiency. A range of factors, including the availability of cheap and efficient computing resources, the digitization of financial services, and the abundance of data on individuals and organizations have driven the adoption of AI in finance.
AI is seen through robotic process automation (RPA), which involves using robots to automate repetitive tasks and can be cost-effective compared to hiring human employees. RPA is often classified as AI, although it lacks intelligence and is simply a rule-based system. The use of AI and machine learning in finance also includes the development of virtual assistants and chatbots, which use natural language processing (NLP) to communicate with customers and conduct banking tasks. These technologies are aimed at improving customer experience and streamlining processes. AI-driven beta funds, which use constantly evolving algorithms and rules to reduce the risk of human error, are also becoming more popular in the financial sector. The adoption of AI in finance has been led by tech start-ups in Silicon Valley. Still, it has also been embraced by traditional financial institutions and companies in other parts of the world.
What do you think of AI? And will it lead to more efficient and effective financial services, benefiting both customers and businesses.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.