How AI Is Transforming the Finance Industry
An overview of the most common applications of AI in finance—and challenges faced by the industry.
In January 2020, the Cambridge Centre for Alternative Finance (CCAF) released a study on the impact of AI in the finance industry. Known as one of the most comprehensive global surveys in this domain, it comprised around 151 respondents from 33 countries, including incumbent financial institutions and FinTech firms. The study came up with the following findings:
At least 77% of the respondents believe that AI bears high importance to their organization in the next couple of years.
Almost 64% of the respondents intend to earn revenue through AI via client acquisition, customer service, risk management, process automation, and new products.
At the moment, AI is widely used in risk management, having an implementation rate of 56% among firms.
Traditionally, HFT firms and hedge funds were the primary AI practitioners in the finance sector, but lately, FinTech…
