Introduction
we are talking about artificial intelligence applications in financial services. According to statistics, 32% of banks are already using AI.
AI is rapidly transforming finance, evolving from theoretical applications to an integral source of efficiency, innovation, and competitiveness.
Leveraging vast datasets and advanced algorithms, AI empowers financial institutions to make better decisions, streamline complex processes, and enhance customer experiences.
And ultimately navigate the complex world of contemporary finance with greater accuracy than ever before.
AI is transforming financial services through real-time fraud detection, market forecasting, and personalized guidance.
This is no longer theoretical but a current reality.
This introduction will touch on the major areas where AI is being utilized in finance, with a highlight on its transformative power across the industry.
How is AI applied in finance?
First up, let’s talk about automation. It enables organizations to boost productivity and cut operational costs.
Statistics say that AI helps companies save up to 70% of the costs associated with repetitive tasks
The next point is credit decisions.
We once developed AI based software that helps banks access potential borrowers.
It immediately analyzes countless factors, thus saving costs and making the process much faster. Sounds exciting, doesn’t it?
Then let’s mention trading. AI driven trading systems can analyze massive amounts of data much quicker.
You won’t believe it, but predictions made by AI algorithms are much more accurate because they can analyze a lot of historical data.
Moreover, AI can analyze a specific investor’s long term and short-term goals to provide recommendations on the strongest portfolios.
The next area is risk management.
AI can handle risk management tasks much more efficiently and analyze various financial activities in real time.
Then comes fraud prevention. AI driven fraud detection tools can analyze client’s behavior, track their locations, and determine their purchasing habits.
Therefore, they can quickly detect any unusual activities. Our team is especially excited by personalized banking.
AI powered chatbots minimize the workload of the call centers.
There are also many apps that offer personalized financial advice so that users can achieve their financial goals, track regular expenses, income, and purchasing habits.
Do you think AI chatbots and personalized financial apps are helpful? Have you ever used them? Share your thoughts and experience under the video.
Leading banks like Bank of America, Wells Fargo, and Chase already utilize AI in their mobile apps, offering features such as bill reminders, efficient communication, and expense planning for users.
So according to our experience, the most common applications are robot advice and customer recommendation apps, AML and fraud detection systems, chat bots, and algorithmic trading systems.
Wondering what to expect from the future?
Here’s our view on how AI will further transform the financial institutions.
Conversational interfaces and chatbots are becoming more common.
Companies like are already developing industry specific software that makes the necessary calculations and evaluates budgets quickly.
New standards of security. Can you believe that passwords, usernames, and security questions may disappear in the next few years?
AI-powered security solutions are increasingly likely in finance. Banks may use speech and facial recognition, along with other biometric data, to enhance or replace traditional passwords.
Automated solutions for financial sales already exist, but not all of them involve machine learning.
Virtual assistants can also provide personalized smart recommendations to help you choose insurance services, change your investment portfolio, etcetera.
Artificial intelligence has already changed many industries forever, so it makes sense to expect a wider adoption of AI in finance.