Of all the sectors in which AI is being used, the banking and finance sector is the one which utilizes AI the most. With their ability to detect and possibly prevent potential cybercrime, make data-driven decisions, and act as your personal financial advisor, it’s no surprise that several banks are using AI to improve customer relations.
For example, Chatbots such as Plum and Cleo are designed to act like your personal accountant. By analyzing your spending habits, investments, and income, they can provide feedback on your account activity and even help you save money. Banks themselves have started deploying chatbots to aid their users in making financial decisions. Systems like Meraglim RAVEN use IBM Watson to run predictive financial data analytics software in order to help investors perform better in the financial market. Juniper Research predicts that by 2022, chatbots would have saved over $8 billion in costs annually.
However, McAfee reported that cybercrime makes up for $600 billion in loses for the global economy. Online purchases can lead to online crime, and one way of preventing this is by employing AI to act as the guards. By constantly feeding relevant data into an AI system, it’s better equipped to detect fraudulent activity and even prevent it before it occurs. In the case of Sift Science, it also collects data from the thousands of websites on which it is used and uses this data to detect abnormal patterns in a customer’s purchase.
In an algorithm-based system, AI can process data and numbers much faster than the average human, making it excellent for trading. Sentient Technologies uses AI to run a number of trading simulations based on available public data and uses these scenarios to distinguish successful trading patterns and come up with new strategies. AI can process this data so quickly that a few hundred days’ worth of trading can be completed in under a few minutes. The AI Powered Equity launched with $2.5 million in assets and surpassed their initial goal of making $40 million by the end of the year within the first week.