What are some promising use cases of AI in the future of banking and finance

What is artificial intelligence?

Artificial intelligence (AI) is a field that uses computer systems and applies mathematical techniques to large amounts of data to perform automated decision-making and task execution.


AI can be used to perform different types of analysis, including ‘explanation’, which explains what happened, ‘precision’, which predicts what will happen next, and ‘prescription’, which suggests what should be done to achieve a specific goal.


AI is now a common tool used for activities such as Internet searches, facial recognition, social network recommendations, or route determination in navigation applications. While some AI-based technologies have been around for decades, others are relatively new and many, such as machine learning, are advancing rapidly due to increased data availability and better technologies that can handle larger volumes and data sources.


AI technology has demonstrated a powerful ability to recognize patterns, but it is unable to perform associative learning like humans to analyse broad overviews and connect all knowledge. The challenge for future AI is to further improve our awareness of and response to our environment. The ultimate goal of AI technology is to improve the technical and industrial capabilities of the economy, serve people, and improve their well-being.


Future use cases of AI in banking and finance


Implementing AI is no longer a future goal, but both traditional banking businesses and emerging fintech companies are embracing the reality. AI in banking has been deployed globally, with North America and Asia Pacific holding the largest market share. This chart from Statista shows the market value growth of banking AI from 2018 to 2030.


  • AI in banking


In each of these areas, AI is becoming a tool to achieve increased efficiency, process automation, business efficiency, and increased productivity. The benefits offered by AI banking will give businesses a competitive advantage and help them make great strides in improving customer experience.


AI will make financial-related processes more personalised, insightful, and faster. Tasks that used to take employees hours to perform now take AI minutes or even seconds to complete. Many fear that AI will threaten people's roles in the workplace because it has the power to reduce workloads and costs. But these fears are unnecessary. As our experience with AI integration shows, the current stage of technological growth does not allow machines to become autonomous and self-governing. AI banks can take over most of the tasks performed by humans, but they still require human guidance, control, and management.


AI therefore gives employees a lot of free time while also assigning them many new responsibilities and roles. They may put more effort into goal-critical tasks instead of completing routine tasks. Moreover, using AI in banking can help make operations smarter and more effective. Let’s examine how artificial intelligence is impacting the banking industry by examining three examples below.


  • AI and banking data


Humans have limited ability to manually analyse data. The banking and finance industry is well-known for its broad reach, requiring professionals to deal with large amounts of data. As a result, it becomes impossible to manually analyse all the data and draw insightful conclusions. AI is useful in this situation.


Artificial intelligence in banking can collect and analyse vast amounts of customer data and infer each customer’s preferences and service needs. This data is used by AI to automatically personalise banking services and meet specific needs in real time. If financial institutions use AI to tailor their services, offer 24/7 AI-powered customer care, and customise product recommendations and notifications, the future of banking looks bright.


  • AI and banking workloads


Implementing AI in banking will also improve automation in banks and financial institutions. You can assign tasks to your computer that are normally performed manually. For instance, creating reports, changing passwords, asking financial questions, etc. can be performed by AI, while customer support representatives can handle more complex issues. By investing in AI, banks can provide faster, more useful customer support by giving customers 24/7 access.


  • AI and user experience


Using AI in banking lays the foundation for ensuring innovative user experiences. In a conversational format, users can interact with the AI-based Large Language Model (LLM) and use it to complete various tasks on their bank accounts. Instead of searching for the right button or function, users can ask the machine to perform a task in seconds.


For example, you can check your balance, perform transactions, get reporting data, set custom reminders, and more. Businesses may greatly simplify user experience and lower the complexity of fintech processes by using AI into banking and finance operations. This, in turn, helps you easily attract new customers while avoiding situations where new users become confused about how to use your banking app or website.


As a professional AI development and integration company, we have experience working with advanced large language models such as ChatGPT. Our AI Bank development team can help you integrate conversational AI services into your solution and configure it to suit your needs.


Read Also : Use Cases of AI in the Banking Sector

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