Artificial intelligence<\/strong> together with its most talked about subcategory machine learning<\/strong> are probably the biggest two factors impacting the entire business world and transforming it. We may not always realize how these technologies are involved in our day-to-day life, but in reality, they\u2019re present in a lot of aspects. In a business context, almost every industry leverages the power of artificial intelligence<\/strong> and machine learning<\/strong> \u2013 from traveling industry to transportation industry to the healthcare industry and many more. In this post, we\u2019re going to explore the impacts of these two technologies on the finance industry.<\/p>\n

Here\u2019re the major ways through which the finance industry is leveraging the power of artificial intelligence<\/strong> and machine learning<\/strong>.<\/p>\n

1- Better risk management<\/em><\/strong><\/h3>\n

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Probably the biggest impact of artificial intelligence<\/strong> and machine learning<\/strong> on the finance industry can be found when it comes to risk management. While traditional software applications can predict creditworthiness based on the static information obtained from financial reports and loan applications, implementation of machine learning<\/strong> technologies can help financial institutions to go much further. Algorithms identify the signs of probable future issues and analyze a client\u2019s history of risk cases to help the authorities make an informed decision. They\u2019re also able to identify present market trends together with relevant news items which can affect the ability of a client to pay.<\/p>\n

2- Improved data security<\/em><\/strong><\/h3>\n

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Data security has always been at the top of the list of concerns for any financial institution. And if you consider the number of data breaches occurred during recent years, there\u2019re reasons to be concerned. Traditional security tools aren\u2019t capable of identifying modern sophisticated cyberattacks. To mitigate security risks, financial institutions implement advanced technologies like machine learning<\/strong>. Security solutions powered by machine learning<\/strong> are come with unique abilities to secure the financial data. The combined power of big data capabilities and intelligent pattern analysis gives machine learning<\/strong> security technology a robust advantage over traditional tools.<\/p>\n

3- Enhanced customer experience<\/em><\/strong><\/h3>\n

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Like all other industries, the financial industry is also focusing on developing the top line by implementing advanced methods to offer custom services and better experience to customers. Many financial institutions have already introduced chatbots powered by artificial intelligence<\/strong> abilities that can analyze the voice of a customer and converse accordingly. With the help of machine learning<\/strong> and big data, these chatbots understand how to respond to the questions of customers\u2019 \u2013 from transaction-specific questions to onboarding concerns. Additionally, technologies backed by artificial intelligence<\/strong> and machine learning<\/strong> are capable of making product recommendations and handling customer requests.<\/p>\n

Parting Thoughts<\/em><\/strong><\/h3>\n

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In the finance industry, the disruption triggered by artificial intelligence<\/strong> and machine learning<\/strong> is increasing exponentially and toward greater economic impact than ever, both on the customers and the industry. By addressing all the major operational aspects and adding advanced features, these technologies are not only revolutionizing the entire industry but also improving the financial health millions of customers involved in the process. And from a business perspective, these technologies are driving a more fundamental and deeper shift in the finance industry.<\/p>\n