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Artificial intelligence is the technology to make intelligent machines that can work and react like humans. AI is achieved by learning how a human brain works to analyze and solve a specific problem. It is a software program that is developed by using human intelligence like reasoning, learning, and problem-solving. Today most of the companies have switched to technology for their day to day activities. The finance industry is also heavily dependent on technology today. AI and machine learning have enhanced the whole gamut of working of the finance industry by leaps and bounds. Artificial intelligence studies the market using machine learning techniques like big data analytics for predictive analysis so that the company can provide a consumer according to their requirements. There are many ways AI has help financial institutions to achieve better consumer satisfaction.
A detailed analysis is given below:
Personalized Financial Services: AI has helped financial institutions to segregate their customers into specific groups base on their requirements. This helps these institutions to launch customized products based on a consumer’s demand. Specific marketing strategies are also launched to the groups based on their transactions.
Risk assessment: This basis of artificial intelligence is an analysis of past data. By predictive analysis, banks analyze a customer’s past record and validate their credentials. This helps in loan approvals and credit card applications.
Trading: Investment companies have been using data science to accurately predict market behavior and invest accordingly. By artificial intelligence, machines can predict a pattern in past data and by predictive analysis, can predict when the pattern will repeat. AI can also suggest possible investment opportunities based on an organizations risk-taking capabilities.
Fraud Detection: AI is helping in making financial services safe and breach free. By using AI, organizations can predict a fraud before it happens. Using AI solutions banks ensures that all the regulations, policies and security norms are followed before making providing any financial service.
Automation: Automation is used to perform repetitive tasks with a great level of precision. AI provides automation to achieve a high level of accuracy and precision thus safeguarding a consumer’s interest.
The best thing about AI is that it keeps evolving and learning from its mistakes. By learning and analyzing human psychology it has become less error-prone and this provides a great level of security to the finance industry.
See Also: Medium | CIO Review