In the current scenario where technology has evolved drastically, a lot of enterprises have started adopting advanced technologies to smooth and enhance their work flow. Artificial Intelligence or AI is one such technology that is high in demand these days. The term Artificial Intelligence was originally introduced by John McCarthy in 1956. It has become a popular technology, especially among large enterprises that deal with a huge amount of data. The noteworthy thing about AI is that this technology is extremely efficient in identifying data patterns as compared to humans. This property of AI makes it quite beneficial for companies in understanding their target customers and helps to obtain key insights about them. A number of companies throughout the globe are investing in AI development services to become more competitive in today’s business era.
Among a number of industries, the Finance industry is finding AI a great technology that has completely digitized their processes. It allows finance companies to serve their customer’s requirements efficiently while enabling them to stay ahead of their competitors such as Axximumfunding. As per a report by Accenture, it has been stated that Artificial Intelligence technology could enhance profitability by an average of 38% by 2035. It is expected to contribute $1.2 trillion in value to the financial industry by the year 2035.
Besides, according to a research performed by the National Business Research Institute and Narrative Science, it has been observed that around 32% of financial service providers are already utilizing AI technologies such as Predictive Analytics, Voice Recognition, and many others.
Benefits of Artificial Intelligence Technology for Finance Companies
Some of the key ways in which AI can benefit financial service providers include:
- Helps to Reduce Risks and Increase Customer Satisfaction Rate: Artificial Intelligence (AI) and Machine Learning (ML) together are gradually taking the place of a human analyst, which is helping greatly in risk assessment. In the case of a human analyst, there are huge chances of inaccuracies that may cause huge losses to finance companies. However, this is not the case with AI. With AI, a technology developed on machine learning; there are fewer possibilities of mistakes. Besides, it has the capability to analyze a huge volume of data quickly in an accurate manner. It would be correct to say that AI has incorporated automation in various complex areas of the financial sector where there is a requirement of smart analytical and precise thinking. The utilization of interactive agents, also known as chatbots in financial services is an exceptional way to deliver superior customer experience. It also helps enterprises to utilize their resources efficiently which further helps them to save a lot of time and money. AI technology has the ability to go through a huge number of personal financial records and come up with a correct solution. Since AI is a data driven and data dependent technology, it can scan through various records to make a recommendation of loan and credit offerings to the existing as well as potential customers.
- Facilitate Secure Management of Customer’s Data: Companies in the financial sector must employ all the measures that can help them to reduce the risk of fraud as they are required to deal with a huge amount of customer’s data. Artificial Intelligence is perhaps the best tool for financial companies when it comes to security and scam detection. With the help of AI, companies can go through the customer’s history related to transactions so as to identify any abnormal deeds. Besides, the system is smart enough to learn from the experience and is capable of making a difference between the right and fraudulent activities. Based on this understanding, the system can make smart decisions, thereby ensuring utmost security while managing the customer’s data.
- Ability to Predict the Right Time for Investment and Trading: Finance companies largely depend upon computers and data scientists to identify future patterns in the market. Based on the ability to predict the future precisely, it helps companies to make decisions related to investments and trading. AI along with ML can help to predict the right time for investment. The technology has the ability to analyze a huge volume of data in a short period of time. AI can also analyze things easily based on the patterns in past data and predict how these patterns may replicate in the future. A machine can also be taught to determine the right cause for any glitches in the data and can be programmed for future predictions as well. Therefore, a company with high-risk factors can rely on AI to make informed decisions related to any purchase or investment.
So, these are some of the key benefits of AI for Finance companies. If you are looking for AI development services, make certain to choose a professional Artificial Intelligence development company that has experience and expertise in developing various customized solutions to meet the specific requirements of the companies.
Shobhit Srivastava holds the position of Digital Marketing Executive at Ecosmob, a Customized VoIP and Web-IT Solution provider company. A writer at day and a reader at night, he is having keen digital marketing skills along with an experience in writing an SEO-friendly, creative & informative contents for distinct industries.