Artificial intelligence (AI) is currently being utilized in all sectors, helps to simplify operations, consolidate information and data, and detect anomalous behavior. However, AI is especially effective in the finance industry, where it’s changing everything from financial planning to loan underwriting, fraud prevention and more.
The most frequent use cases for AI in finance are automatizing repetitive, high-frequency tasks to reduce human error and free up resources to concentrate on more strategic activities. Robotic process automation can, for instance, reduce costs and manual data entry by 50%-70 percent. AI can aid in speeding up market research, forecast investment growth and assess the risk of investment by identifying suspicious information and alerting users via real-time alerts.
Other possible uses for AI in finance include the prevention of cyberattacks and financial crime. Fraudulent transactions cost billions of dollars every year. AI can aid in identifying suspicious patterns in large data sets. With deep learning and other sophisticated algorithms, AI can help identify fraudulent transactions before they are completed, for instance, when a car loan application is found to be not in compliance with the company’s guidelines.
AI is also an essential element in providing 24/7 support to customers, assisting them to navigate financial services via chatbots and voices. AI-powered virtual assistants enable users to access their account stay updated with industry news and insights details and check transaction history and get personalized insights by simply asking questions using natural language – no need for complicated queries or transaction codes. They can also offer personal and personalised recommendations on additional savings and investments, insurance, and more.