Artificial intelligence (AI) has a major impact on a variety of different areas of life. Finance is one of the sectors most impacted by the increasing use of Artificial intelligence in finance. But financial institutions were not born into the digital world: To adapt to digital change, changes and technological adjustments are required at different levels.
In recent years, data in the financial sector has led to important technological innovations in terms of customizable and secure solutions. In recent years, data analysis has not only changed individual business processes but the entire financial services industry.
The combination of speed and AI-based processes with human intelligence and an analytical mind opens up new possibilities for companies. For companies in the financial sector, promising opportunities have arisen, and these have just begun to develop their potential in recent years.
The area of accounting and documentation in finance is particularly suitable for the use of algorithms. Banks and insurance companies were among the first industries to recognize the potential of machine learning and data analytics to solve concrete problems. Take credit cards as an example: the decision of who can and cannot have a credit card used to be made by experts using carefully crafted rules and calculations. This process is complex to control and the assessment requires a high level of contextual knowledge. Such calculations were often based on creditworthiness. However, machine learning uses algorithms and statistical methods to analyze data and recognize patterns.
More than just decision-making
Based on available financial data, artificial intelligence not only provides information for decision-making but is also able to suggest more beneficial outcomes. For example, it calculates a card’s interest rate so that it is most attractive to the card-issuing financial institution. Artificial intelligence and machine learning are thus taking the place of human experts and can counteract wrong decisions that can cost millions.