AI is making an impact in Financial Industry
Throughout different aspects of life. It is no surprise that the financial world is looking to capitalize on the efficiency and the speed of the Artificial Intelligence (AI). Long known for making a lot of money but paying out little, the financial world seems to be seeking a way to boost their profits will be cutting their costs.
Financial transactions are not always easy. There is a lot of paperwork to fill out and review. AI could cut through this red tape and speed up the financial process while saving money.
Machine learning is an asset
The financial companies around the world could benefit from the 3 machine learning functions that apply to AI technology. The statistical feature would allow financial institutes track borrower’s habits. This would allow financial institutes to discover any patterns that would be useful in their business decisions.
The supervised learning technique would target specific areas and inform the financial companies the credibility of any borrowers. There is a world of applications for AI in the financial world
Technology in use
In some ways, the machine learning ability of AI is already being put into use. Form market research to investing to credit scoring and more, AI is helping the financial world make better financial and business decisions. It is also doing it at a rate that far surpasses human research and analyzation.
But these do not utilize the full potential of AI. There are a lot of promises being made by those who zealously trumpet AI’s potential. But those promises have a few hurdles to overcome.
Some difficulties to fix
While some people think that AI is the ultimate technological superhero it does come with a few flaws. AI’s use in the financial world is not set nor is it perfect. AI is vulnerable to the type of data it is fed. In other words, if the AI unit is fed junk data then its results will reflect that junk status.
The fact that human bias can be hidden in the data skews the results and is very hard to detect and correct.
Then when AI is fed proper data, it produces only general results. Individual cases may go against the predictions. There will be no explanation accompanying the AI conclusion which can make AI useless when it comes to trading issues.
Another problem that needs to be overcome is that AI is restricted by its programming. Any task requiring AI to do something different than it is programmed to do cannot be done.
This is further illustrated by its inability to detect any suspicious activity outside of its programmed searches.
This does not mean people stop trying
These weaknesses only expose areas where more thought and research are needed to be done. It isn’t the strengths that need a lot of work. It is the weaknesses that need the attention.
AI can vastly help the financial world once researchers overcome those protocols that keep AI vulnerable to human manipulation.