AI is emerging and impacting the world through the various application. AI technology is powering most of the activities such as from driving us to work, adjusting the thermostat. According to Gartner most of the business has implemented AI solutions.
Some industries artificial intelligence, machine learning, and deep learning have various applications and one such industry of these is the finance industry where new emerging technology is already disrupting the business and challenging.
Risk management
AI plays an important role in managing the risk and in the work of finance, also time is money. Here the algorithm is used to analyze the case history and identify any potential issues which involve the using of machine learning to create precise models that help the financial experts to follow certain patterns and identify possible risk. Kensho Company which is based in Massachusetts provides data analytics and machine intelligence solutions to major financial institutions.
Fraud prevention
Fraud detection models are very well required to protect sensitive data since due to the massive growth in digital customer transaction.AI are sued for reviewing spending history and behaviors to highlight irregularities such as a card utilizing in different global locations in a short space of time. Every use case in fraud management has different requirements for the AI algorithm. Companies such as shape security provide fraud detection services to US banks and deals credential stuffing, credit application, gift card tracking, and scarping.
Personalized banking
Smart chatbots powered by AI helps to provide solutions to customers and reduce the workloads for the call centers. Most of the banks have apps that offer personalized financial advice and helps in achieving goals. These systems help to track income, regular expenses, and spending behavior and also helps to provide financial plans. Abe AI which is a virtual financial assistant that can integrate with different modes of communication such as Amazon Alexa, google home, etc and provide services which include support request, financial management, and conversational banking.
Quantitative Trading
Investments in the company mostly rely on computing and data science to predict future patterns in the market. AI provides helps to observe patterns from past data and make a prediction of whether they will repeat in the future. AI helps to personalize investment for a particular investment and helps in their decision. Kavout is one such company that uses quantitative analysis and ML for processing the data and helps to identify patterns in the financial markets.
Credit decisions
AI is used in different decision-making processes such as credit in which AI provides an accurate assessment of potential borrowers fastly and also at a lower cost. AI credit scoring is very complex and they help in various applications that are more likely to be the default and lacks reliable credit history. ZestFinance company uses AI-powered underwriting solutions for enabling the business to access clients at low levels of credit history.
