AI in Finance Sector
Artificial intelligence (AI) is rapidly changing the financial industry. AI can automate, accelerate and improve a variety of traditional financial processes, such as cash management and invoice processing. These processes are highly repetitive and time-consuming, making them ideal for automation through AI. By eliminating manual tasks finance teams can focus on more strategic initiatives and encourage innovation across the organization.
For instance an AI algorithm can spot market volatility and help financial institutions anticipate potential risks and make necessary adjustments to their investment strategies. AI can also streamline the process of underwriting loans, by analysing credit data to automatically determine a client’s creditworthiness. This allows banks to approve loans quicker and more precisely.
AI can detect patterns by combining data from different sources. Human analysts would find it difficult to detect these patterns. This helps companies improve their risk assessment and boost profitability by minimizing losses from unexpected events. AI can be used to monitor the behavior of customers and identify fraud, allowing financial services firms to minimize risks and ensure compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Alongside enhancing efficiency, AI can help companies attract and keep top talent. For instance Gen Z and millennials Gen Z employees are more likely to join a business that makes use of AI to manage its finances than one that doesn’t. AI can increase the accuracy of employees and reduce burnout among employees by reducing the number of repetitive, high volume tasks that need to be accomplished manually.