Artificial intelligence encompasses a wide range of computer science in relations to the creation of smart machines that are able to perform tasks that require human intelligence.
With the involvement of AI, it has successfully open doors to many possibilities across various industries. In the world of finance management, the birth of personal finance applications brings about a higher level of convenience and better performance results as compared to the traditional means.
AI is commonly used in many sectors such as healthcare, gaming, retail and manufacturing. In fact, most individuals are receptive to having AI do the job in these industries. For instance, AI has played a huge role in the medical sector where these smart machines are able to run tests automatically to produce accurate analysis and medical advice. Similarly, companies in the manufacturing field enjoy huge cost savings and higher production level with the help of AI.
However, such sentiments are not extended to the world of finance, at least not until the occurrence of Covid-19. Previously, humans are receptive to AI as long as we hold the power to make decisions. AI was seen as a complement to our decision-making process by replacing the role of humans in activities that are time-consuming, tedious or administrative. In the finance sector, AI plays a slightly different role. FinTech innovations make use of AI to look ahead, predict trends and make judgement calls on our behalf. There have also been cases where automated traders crashed markets which resulted in huge financial losses. This has caused humans to be sceptical of having AI manage their personal finance for them.
In hindsight, AI has produced certain breakthroughs in recent times, which includes higher accuracy in judgement-based tasks. Nonetheless, there is still work to be done to build trust, where the Covid-19 pandemic has motivated some individuals to take the leap of faith.
A recent global survey of consumers and business leaders conducted by software infrastructure firm, Oracle, reveals that individuals trust robots more than humans with money.
The Covid-19 pandemic has not only caused an increase in financial anxiety amongst consumers. It has also derailed most financial plans that were put in place by business leaders. Consequently, the rise in anxiety far outweighs the scepticism and fear about the role of AI in financial services, motivating individuals to explore the options of allowing robots to assist in managing their finances.
To help navigate financial complexity, consumers are increasingly trusting technology over people to help. The survey results point to 67% of the respondents trusting a robot more than a human to manage finances.
Besides the fact that the pandemic has been a watershed moment for technology adoption. Technology advancement in the financial services sector has also caused a surge in FinTech innovations, providing timely and stronger support for consumers during such difficult times. Trained and fuelled on data, AI can unlock new commercial and economic opportunities, improving services offered by introducing efficiencies and insights into core systems.
AI technologies offer a wide range of benefits. For instance, artificial intelligence is capable of handling large volumes of information and in a much more efficient manner than humans. This implies that computers can replace the role of humans in creating meaningful reports for analysis. By relying on the insights and metrics generated using AI, financial professionals can be much more efficient in budgeting and forecasting.
The incorporation of AI also removes the risk of human errors due to fatigue and possible biases in relation to emotions and connections. In fact, risk assessment through the use of advanced software is showing promising results across industries, especially in the finance sector. Likewise, AI is able to perform more efficiently when it comes to fraud detection and prevention.
With the help of natural language processing, these smart robots are able to make human-like decisions in a much more efficient manner. An example is the use of chatbots, designed to cope with the huge variety of unstructured responses that people may type or speak into their devices. These chatbots carry the ability to learn from each encounter to pick up subtle phrasing and tensions that allow them to better identify ways to help users.
EPS Consultants is a leading recruitment agency specialising in FinTech recruitment services. Our consultants are proficient in the FinTech industry and we subscribed to market-leading tools that allow us to expand our search. We are committed to building a strong team of FinTech professionals for our clients who can bring companies’ development plans to greater heights.
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