The pace at which companies are inclining towards the adoption of Artificial Intelligence is incredible and the financial sector is not exempted from this trend. According to a report, financial institutions that invest in AI and human-machine collaboration will boost their revenue (32%) by 2022.
AI is considered as a disruptive innovation for the financial institutions. According to a survey, 72% of senior management see AI and machine learning (ML) as crucial factors of competitive advantage. The survey emphasized that 52%of organizations in financial sectors are making substantial commitments to AI, with 66% forecasting significant investments by 2020.
The financial institutions have been using AI in a few sectors only but with the increasing market competition, there's a rapid growth in this sector. The need to reduce the ongoing expense and the advantages of harnessing increasing volumes of data.
“Banks are experiencing massive competitive pressure from multiple organizations that don’t carry the same technical debt in the form of legacy software,” highlights Daniel Kroening, Professor of Computer Science at the University of Oxford, and CEO of Diffblue. “Emergent fintech challengers, such as Revolut and Monzo, are fast to market, better at engaging customers via digital channels, while delivering user-friendly, more straightforward applications.”
It is rightly pointed out by James Duez, co-founder and chairman of AI company Rainbird that the banking sector is also coming under pressure to meet the demands of the audience.