as prediction gets cheaper and better, machines are going to be doing more of it. That means businesses — and individual workers — need to figure out how to take advantage of the technology to stay competitive. This can affect the way you bank, invest, receive loans and prevent financial crimes.
Here are some of the key trends that making inroads in the space.
e-commerce has risen in popularity, so has online fraud. Yet fighting online fraud is very challenging. Artificial intelligence can come in handy here. By analyzing various data points, machine learning algorithms can detect fraudulent transactions that would go unnoticed by human analysts while improving the accuracy of real-time approvals and reducing false declines. Companies Instead of limiting itself to predefined rules, DI gleans patterns from historical shopping and spending habits of cardholders to set a behavioral baseline against which it will compare and score each new transaction.This is a major improvement over traditional prevention technologies, which rely on a one-size-fits-all approach to evaluate all transactions.
Chatbots powered by natural language processing (NLG) and machine learning algorithms have become a powerful tool in different domains. AI chatbots can improve the banking industry, including helping users manage their money and savings:
- Plum, a chatbot accessible through Facebook Messenger, helps you save money in small increments. The AI engine behind it analyzes your income and spending habits and predicts how much you can afford to save.
- Cleo, a chatbot that assists you in tracking your income and expenses across multiple accounts. The chatbot lets you query your financial data in a conversational manner, as if you’re speaking to a personal accountant. The assistant can also help you by providing tips on how to manage your money and save for future plans.
- Bank of America plans to launch its AI chatbot Erica. This digital voice or message assistant will help you make faster and smarter decisions.
If there’s one thing computers have always been good at, it’s crunching numbers. Thanks to machine learning, they can now take on the subtleties and complexities involved in tasks such as trading stocks. A handful of hedge managed to obtain results that rival the intuition of human experts. These techniques enable the startup to squeeze 1,800 days of trading into a few minutes. Successful trading strategies (genes) are then tested in live trading.
Artificial intelligence as is still in its infancy, and use in including legal, ethical, economic and social challenges. The future of money just got more exciting.