A lot of companies, businesses and firms are discussing how AI technologies can be used to improve their business processes. Some are even beginning to invest money into AI technology.
There are also AI-controlled technologies, such as fintechs and robo advice, automating human jobs.
Altus Consulting published a report this month, Artificial Intelligence: the evolution of financial advice. They investigated Artificial Intelligence forms in the UK, the US and other countries around the world, looking at what AI does and how it could fit into the financial services sector in the future. They believe those not using AI will be left behind, as AI advances even more in the coming years.
What is AI?
Artificial intelligence is a section of computer science that involves creating machines that teach themselves using logic. These ‘intelligent’ machines use machine learning and deep learning, giving the technology the ability to improve tasks, and to perform tasks.
According to Altus, the next ten years will see great amounts of technological change and innovation. They say that machine-learning and deep learning will both become better, computing capacity will improve and enormous amounts of variable data will be developed, in order to teach the machines.
Pressure on jobs and security
In Altus’ report, 25 percent of people admitted that they are worried about losing their job because technology will have advanced to a stage where their job becomes irrelevant.
Over 80 percent are worried about cybersecurity, with new technologies and more devices on the market, paving the way for cybercriminals to exploit systems. Altus says cybersecurity is an issue that will be in constant development.
There are also concerns about AI making incorrect decisions, which can be addressed with better access to data, and with individuals controlling their own data, to maintain security.
Utilising AI for business innovation
An increasing amount of business websites are offering customer support representatives, otherwise known as bot responders. They are becoming more popular, currently at 18 percent and increasing.
So far, there are only a small amount of experts in the field, with AI still in its primitive stages and only dating back to the 1950s. Businesses who don’t use this expertise often fail to understand the knowledge and time it takes to properly deploy AI technology.
AI and financial services
Some have looked to financial services as the next step in AI technology, with hopes that one day a digital adviser AI could collate the collected knowledge of 1,000 financial planners, giving AI the machine-learning capability to answer any difficult or complex problem. However, this system is still far off.
In financial services, AI technologies are being used in various ways. Some insurance providers are using AI to streamline process flows and fight fraud, some banks are using chatbots to improve customer experience and some robo advisers are using AI solutions as part of their digital robo solution.
Firms are using AI for narrow, specific decisions but in the short term, this isn’t going to allow AI to replace human jobs. It is the collaboration between human and robot that will allow businesses and financial firms to become more efficient.
80 percent of people want to deal with a person, not just a robot. With the financial industry transitioning to open banking, Altus says people will eventually become comfortable with using AI and will begin using these technologies for financial decisions.
Using AI, financial advisers can work with a machine learning capability to complement their own skills and knowledge, for more efficient, timely and cost-efficient business operations.
You can read the full report here.