Use Cases for AI in Finance
Artificial intelligence (AI), which is being utilized in all sectors, helps to simplify operations, consolidate data and information and detect abnormal behavior. But AI is most effective in the finance industry, where it is transforming everything from financial planning to loan underwriting to fraud prevention and more.
AI is most commonly used in finance to automate repetitive tasks that require high frequency. This reduces human error and allows resources to be devoted to other strategic tasks. For example, robotic process automation can reduce the manual entry of data by 50 to 70% and cut costs. AI can aid in speeding up market research, forecast investment growth, and evaluate risk by flagging anomalous information and data management best practices for optimal performance alerting users with real-time alerts.
Other use cases for AI in finance include preventing cyberattacks and financial crime. Fraudulent transactions cost billions of dollars every year. AI can help detect suspicious patterns in large data sets. AI can detect fraudulent transactions by applying deep learning and other sophisticated algorithms. For instance, when a car loan request is found to be out of compliance with the company’s guidelines.
AI is also a vital component in providing 24/7 support to customers, assisting them with financial services using chatbots and voice. These AI-powered virtual assistances allow customers access account information, check transactions history, and get customized insights by simply asking simple questions using natural language. The assistants also offer specific and tailored recommendations for additional savings, investments, insurance, and much more.
