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Artificial Intelligence is gaining prominence with technological advancement. Innovations like chatbots, virtual assistants, have already marked their presence into a large number of mobile devices. Apart from the daily chores, AI can be beneficial in the finance sector as well. AI revolutions are machine learning algorithms, software that self-improves when fed with more data. Let’s have a look at how AI is creating a huge impact.
1. Advanced customer service
The process of communications amid the employees of financial assistance and the clients is natural, but one cannot exclude the human factor that is they tend to make mistakes. That is where AI comes into the picture and offers two technological solutions.
• Chatbots: Chatbots in fintech is growing because of their 24x7 availability and the ability to notify users regarding any changes concerning their financial account or transaction. Also, customers can speak to chatbot when the employees are unavailable.
• Robo-Advisors: These are virtual assistants applied mainly in the field of finance. With the help of Robo-advisors, investors can know the risk of investing money in a particular deal. Moreover, robo-advisors cost much lower than human specialists.
2. Fraud Detection
This is a subject of concern from a long period now, and AI could be the first technology in helping us overcome this factor. The advantage of AI in this field is that its fraud prediction system can learn millions of possible fraudulent activities memorize them, analyze them and also detect behavioral changes.
3. Lowering risks in P2P lending
AI is ideally suited for P2P lending as they examine the behavior of customer and identify all potential risks in cooperation with a particular customer. AI-based systems help in verifying an individual’s identity and scan all the documents of the borrower to avoid any chances of fraud activities.
4. AI in Insurance firms
Many insurance firms have adopted AI in their operations. AI can help in assessing the levels of a car or house damage. AI is aiding to increase the level of customer service in the insurance sector. AI-based chatbots can be used in this sector to give recommendations to customers. AI enhances the insurance services significantly.
5. Improved investment
AI can be a useful addition for hedge funds. These funds are basically for wealthy investors who are in search for good sources to invest their capital. AI can help automate this process thereby making it more transparent, secure and precise.
AI has excellent potentials and can be fruitful for the finance sector majorly. With the advancing technology, AI is becoming more common as AI-based chatbots and robo-advisors are helping in spending money wisely.