How AI cuts losses for the financial industry
AI adoption has grown geometrically over the last decade, and finance industry is one of the industries that benefit the most.
The financial services industry is going through a period of big changes and disruptions. AI adoption is accelerating as companies leverage it to improve efficiency and gain a competitive advantage. According to consulting firm Accenture, the contribution of AI to the bottom line for financial services companies worldwide is estimated at $140 B in productivity gains and cost savings by 2025.
AI enables regulatory compliance, improves business performance, drives cost savings and efficiencies, rapidly analyzes and spots trends, creates new value propositions, and promotes quicker decision-making.
Financial services are one of the first sectors to understand the promise of the Big Data revolution and the wave of AI technology. AI solutions in financial business have become more mainstream. FinTech companies are more widely leveraging AI to create new products and services, while banks and older finance institutions mainly use it to enhance existing ones. A larger share of FinTechs is pursuing a more product-oriented approach to implementing AI by selling AI-enabled offerings as a service.
According to Statista, 58% of the banking and finance sector chooses AI software solutions for fraud detection. By 2023, banks are projected to save approximately $447 B by developing and implementing AI applications. The banking and finance businesses use AI for different purposes. Fraud detection is the top one.
AI is powering the future of the financial industry
AI has the potential to solve many of the issues for consumers and financial services institutions alike. This could mean the beginning of a new era for relationships between financial services companies and their customers where AI operates as a helpful assistant instead of a novelty technology. AI is enabling digital transformation across the financial services industry, from FinTech and investment firms to commercial and retail banks. With the power of AI, financial enterprises can increase revenue, reduce operational costs and increase customer satisfaction. The combination of these benefits gives organizations that embrace AI a competitive advantage in the marketplace. Recent findings show that 83% of business leaders believe AI is important to their company's future success.
Investing in AI grants businesses access to more accurate models, giving them a competitive advantage. Unlike older machine-learning practices and regression tools, new AI techniques can find complex patterns in data, even unstructured data such as text, speech, images, and video. The full potential of AI is immeasurable. Companies that will be able to humanize AI and use its power to solve people's problems will be the ones to conquer the future market.