Artificial intelligence can be found in almost all areas of business, including the retail sector, manufacturing, and now even finance. AI has changed a lot over the years and with its advancement, companies and financial institutions are using it to secure their business and improve how banking is done on a daily basis. How is artificial intelligence changing the financial sector?
Modern technology has made it easier for people to bank online through their smartphones, and even use ATMs to get them in and out of banks faster and on with their day. E-commerce has changed the way people buy items: instead of heading to the mall, you can simply search your favorite online store and order from there.
This has increased the risk of fraud and identity theft, however, as hackers and criminals are able to gather vital information and steal funds. In some cases, systems might reject some orders because their algorithm believed it was not your credit card or bank card, and therefore it was deemed to be unsafe to continue with a transaction.
Artificial intelligence can help with these problems by analyzing data and can detect fraudulent transactions faster -- perhaps even those that might slip past the human eye. AI can read previous shopping experiences of cardholders and determine whether this particular transaction would be in line with normal shopping behavior.
Chatbots have become a powerful tool in finance to create a personal and conversational experience for banking clients. They can help manage your money and figure out how to save more; they can even chat with you via Facebook messenger, if you wish. This takes registering for the service through your bank, if it is offered, and letting the AI analyze your accounts and income to help you figure out ways to improve your finances.
In some cases, this conversational AI for finance can also help you with tips in ways that are very similar to dealing with a personal accountant. Chatbots are starting to be used in helping in the self-serve sector of banking, too, which can help you through your everyday banking.
Artificial intelligence is being used in trading stocks as well. It can analyze which stocks will improve and which ones are staying stagnant and even declining. They can potentially tell the value of each stock and whether it's worth investing in.
The algorithms look for changes and patterns in trading certain hedge funds and other stocks to give the user a good idea of what to buy and sell on the market at any given time.