Vertical Artificial Intelligence to Disrupt Banking Industry
How the biggest financial firms will integrate AI
In recent years, the rise in availability of mass storage, computing power, and decreasing costs from open source projects has noticeably altered the speed at which Artificial Intelligence is changing our world. Automation of low value tasks will not only transform a few corporations, but the world economy as a whole.
But first, what is Artificial Intelligence? Artificial Intelligence is not a singular technology that can be easily defined as what humans identify intelligence to be. Instead, artificial intelligence is a group of related technologies that we are much more familiar with day-to-day including speech recognition, machine learning, decision management, and even biometrics. The combination of these innovations are what now drive some our most advanced technologies today. Online animated customer service, computer repair analytics, and even human relations algorithms that you see on dating sites like Tinder are all unsurprisingly taking a part in changing the face of the finance world.
The most obvious of roles for artificial intelligence in large banks will be the processing of large historical data volumes to understand markets while satisfying regulatory and compliance requirements. Over the years, the standard for processing data has become extremely formulaic. Yet, some of these processes still take a surprisingly large number of people performing often low-value tasks, indicating some analyst roles will become obsolete in the years to come. Artificial intelligence will nearly always be able to create more accurate models, reconciliation and consolidation, making these tasks ideal options for robotic process automation (RPA).
In addition to altering financial data processing, machine learning will transform human interaction in banks. Not only will banks be able to gather and process larger volumes of data, but banks will also more closely understand the needs and wants of their clients. Customer service can somewhat be automated, and human interaction will become more closely interlaced with tips and pointers from computers that have virtually iterated the interaction hundreds of thousands of times.
Financial institutions are already well aware of the potential of AI. Some of the biggest firms such as Blackstone and Bridgewater Associates are already reaping and observing the benefits of the new technology. However in the end, it is up to humans to undertake the biggest strategic decisions to properly set AI on a charted course for profitable growth.