Artificial Intelligence (AI) is emerging as a key factor, within the finance industry, toward increasing revenues and achieving business goals. From providing value-based business strategies, improved customer experiences, increased revenue generation and reduced costs, AI is establishing itself as a significant technological advancement to achieving business success. Top management is now viewing AI to assess business areas that are poised to substantially benefit through advanced analytics and deploying it to achieve the desired outcomes.
The natural evolution of technology for business benefits, which took us from paper-work to the internet, is now swiftly transforming toward AI, and the Finance industry is no exception. The heavy volumes of data involved in the finance sector, make this technology a primary resource toward business benefits. The process of pattern establishment and identification is a key advantage that has attracted increasing attention toward the analytical capabilities of this technology. Although AI comes with innumerable benefits for the Finance industry, there are also some concerns with regard to trust, bias and regulatory compliance. Hence it is prudent to view the technology as a means to assist human endeavors, rather than the replacement of human involvement.
AI can be categorized into two broad categories – Narrow AI and Strong AI
This type of Artificial Intelligence is a specialized form of the technology that looks into a particular area of the business and fulfills a specific duty. The process is highly specialized and the deployment of the technology offers only those specific solutions. The tasks assigned to AI are narrow and it adheres only to its set protocol. An example of Narrow AI is ‘Apple’s Siri’. This intelligent technology is designed to gather information from the internet and hold meaningful conversations with a human. However, the technology is very specific and narrow in its approach, wherein it is only designed to address the specific demands of its system. Any requests that go above and beyond to offer holistic solutions, cannot be accomplished.
As the name suggests, this version of Artificial Intelligence is more holistic in nature with a wider purview and the ability to offer solutions that are all-rounded and meaningful. Its capability and functionalities are more encompassing and of a higher standard and it is geared toward offering analytics that extend beyond specific areas, by collecting information from various arenas to offer an overall solution. Strong AI is a close replication of the human mind and is capable of conducting analysis in an error-free fashion.
Through the use of Chatbots, Personal Assistants, Machine Learning, and Cognitive Computing, Artificial Intelligence can be specifically beneficial within the following sectors of the Finance Industry:
There was a time when stock trading was a manual business that was done without the use of computers. Over the years, the trading business has evolved through computerization and it is now being revolutionized through AI.
The Challenges before Artificial Intelligence
With standard technologies that lack innovative capabilities, the stock trading industry has been facing challenges such as:
The Solution AI Offers:
With markets shifting at the speed of light and gigantic volumes of calculations, there can be no doubt that AI has limitless potential toward improvisation in this sector. This technological innovation is geared to transform stock trading as we know it.
Riken Shah is the CEO of OSP. He is a tech enthusiast, healthcare innovation specialist, and avid reader. With over a decade of experience, Riken has helped healthcare companies to be more productive and successful.
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