AI and machine learning have taken hold in the financial services arena in a big way. Many banks are using complex algorithms to assess loan risk, and approve or deny based on their conclusion alone. The traditional loan officer is no longer needed, other than to pass along the decision to the client.
Robo-advisors are set to disrupt the industry in a way never before seen, and there are already plenty of them plying their trade online. Some estimates have them controlling about $2 trillion in assets by 2020. They could be managing 17% of total assets within the next five years, according to others.
Machine learning systems evaluate your online presence for clues about your values, beliefs, and personal ethics to further align your portfolio with everything about you. The system can make real-time portfolio adjustments based on market fluctuations and changes in personal circumstances.
And let’s not forget about the powerful prediction and probability algorithms that are used to make decisions about this stock over that stock, or the best time to buy or sell. AI and machine learning software can process thousands if not millions of data points in the blink of an eye. You’ll never miss a once in a lifetime opportunity again.
It doesn’t stop there. Intelligent virtual assistants and service reps can help customers with a wide variety of questions and problems. The national bank of Sweden recently deployed Nina, an online assistant that achieved 30,000 conversations per month, and first-contact resolution of 78%
The next picture shows machine learning use cases in finance:
General business is not immune to the AI invasion to. An MIT survey of 168 large companies found that 76% are using machine learning technologies to assist their sales growth strategies. Recommendation engines like those seen on Amazon, the New York Times, and Netflix. These learning algorithms examine your past activity or purchases, and compare them against millions of others to (fairly) accurately predict what you might like to buy or read or watch next.Google’s own RankBrain uses AI and learning to better process search queries and return more relevant results. It gets smarter with each inquiry.
Intelligent chatbots communicate and assist customers 24/7. Incredible data-backed insights and customer profiles. Increased productivity. Higher profits.
When it comes to AI and ML in business and finance, sky’s the limit.
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