How is artificial intelligence used in finance?

This year, artificial intelligence has experienced explosive growth due to the development of machine learning algorithms and the rise of intelligent machines. Showcasing the ability to revolutionise the way we live and work, an increased number of business sectors are implementing AI and machine learning to improve efficiency, extract insight, and make informed decision making.

In the financial services industry, AI technology allows organisations to streamline processes, automate manual time-consuming tasks, and better understand their customers. 

It is predicted that the popularity of artificial intelligence will continue to accelerate as technology develops. By impacting the future of work in the financial and banking sectors, AI is expected to automate many existing jobs and create new ones.

To remain competitive in a digital world, financial firms will need to embrace the change and break away from traditional methods and processes.

AI has provided the finance and banking service industry with innovative ways to meet modern customer demands, invest money, and drive insights for data analytics. This guide will explain how artificial intelligence is used to achieve outcomes in the finance sector and provide examples.

Artificial intelligence in finance uses machine learning algorithms and intelligent machines to enhance and improve how financial and banking institutions manage, invest, and spend money.

With AI, organisations can quickly identify patterns in large datasets and discrepancies in financial data. This automated process effectively manages risk, enables compliance, and frees up time for workers to focus on strategic initiatives to drive business and increase productivity.

Global AI in the fintech market is expected to grow at an annual growth rate of 16.5% from 2022 to 2030. The future of AI in finance and banking is predicted to enable further insight to increase business efficiency and reduce costs while providing faster customer support and preventing fraud.

Artificial intelligence is used in the finance services industry in many ways to improve efficiency, manage fraudulent risk, and improve customer service.

This is often achieved through algorithmic trading, risk assessment, fraud detection, and real-time market monitoring. These AI applications help financial firms and banking institutions improve decision-making, review historical datasets, and automate regulatory reporting.

Artificial intelligence is a cost-effective solution for organisations and can significantly reduce operational costs. For this reason, banks and financial institutes are finding innovative ways to implement AI-enhanced technology into their services.

By reducing costs and increasing profit, organisations can gain a competitive advantage over other financial firms.

Finance firms are already continually finding new ways to leverage the power of AI. As AI and machine learning algorithms continue to grow and develop, it is expected that AI applications in finance will expand even further.

Here are some of the ways that organisations are already using AI in finance.

Finance chatbots and virtual assistants can automate tasks by being programmed with coded commands. Chatbots can answer customer questions, perform financial transactions, send credit card reminders, and transfer between accounts.

Additionally, finance companies are using AI chatbots and virtual assistants to answer questions about budgets, spending, and policies to provide customers with detailed insights based on an analysis of customer financial data.

AI can personalise the customer experience in financial services to earn customer loyalty and meet customer expectations. With access to historical customer data, AI-powered solutions can create personalised financial plans for customers and offer relevant suggestions.

Credit risk management tools enhanced by AI can detect early signs of non-payment and fraudulent risk. With AI-powered tools, organisations can check the validity of an individual or company and review their credit history quickly and accurately.

Preventing fraud and keeping customer accounts safe is a top priority for banks and financial institutions. AI technology allows organisations to effectively protect data and identify suspicious activity and possible fraud attempts.

Artificial intelligence can quickly and efficiently sort large volumes of data to flag fraudulent transactions and suspicious log-ins that may otherwise be missed and undetected.

Automated AI software manages and monitors the market in real-time. This helps regulators and financial institutions identify changes and suspicious activities in real-time to make real-time adjustments and prevent fraudulent events.

Real-time market monitoring also enables organisations to identify price movements for accurate price forecasting and to optimise sales.

At CHG-MERIDIAN, we are dedicated to enabling our customers to be at the forefront of their industry. To accelerate your business operations with the latest IT innovations and keep on top of the latest technologies, get in touch with a member of the CHG-MERIDIAN team today.