Artificial intelligence (AI) is currently being utilized across all industries, helps to improve efficiency, consolidate information and data and detect abnormal behavior. AI is particularly impactful in the financial sector. It’s transforming everything, from financial planning to the prevention of fraud to underwriting loans.
The most common use cases for AI in finance is automating repetitive, high-frequency tasks in order to reduce human error and free resources to concentrate on more important tasks. For instance, robotic process automation can reduce manual data entry by 50 to 70 percent and reduce costs. AI can speed up market research, forecast growth in investment, and evaluate risk by identifying unusual information and advising users with real-time alerts.
Other use cases for AI in finance include preventing cyberattacks and financial crimes. Fraudulent transactions can cause billions of dollars in losses every year and AI is a game-changer because it can analyze huge amounts of data quickly and identify suspicious patterns. AI can detect fraudulent transactions by using deep learning and other sophisticated algorithms. For instance, when the request for a car loan is found to be not in compliance with the company’s guidelines.
In the end, AI is a crucial component for providing customers with 24/7 support by aiding them in navigating their financial services effortlessly through chatbots and voices. AI-powered virtual assistants enable customers to access information about their accounts, check transaction history, and gain personalized insights by simply asking questions in natural English – there is no need to ask complicated questions or transactions codes. These assistants can also give specific and tailored recommendations for additional savings or investments, insurance and more.