Most everyone will admit that they are in favor of modern technology. Why wouldn’t they be? It has added many conveniences to the average lifestyle. Perhaps though in some areas it may be going just a little too far. At least if one has to start thinking about Artificial Intelligence (AI) and how it is going to impact their lives particularly their finances.
The Artificial Intelligence Buzzword
Artificial intelligence is something that everyone is hearing at least a little about. But, for most, they are not too concerned about it beyond a nominal curiosity.
The Third Wave
The term third wave sounds futuristic, but it is something that is being referred to in the AI realm. What has been happening in the past is that AI becomes the new hot topic then cools off. Now the experts say this is not the case and AI is going into its third wave, and all indications are that it will no longer be pushed to the back.
What Has Changed?
The perfect environment for AI exists today. Meaning that there are massive amounts of data which artificial intelligence thrives on and new technology is allowing for better methods of computing.
How Is Artificial Intelligence Going To Affect The Finances?
According to those that are AI savvy and are also financial experts, they are indicating that AI will enhance financial services. It will do this by making services more personalized as well as more convenient. Although most people seem to be satisfied with the many conveniences they have with the financial services they use on a regular basis. Such as online banking for example.
Major Impact on Banking
Where the biggest change is going to be most noticeable in this third phase of AI is within the banking system. Mostly with the provision of tools that will help them to streamline their services.
For Analysis Purposes
All the decisions that Banks make about their policies that include their lending policies are based on analytics. With AI they will be able t analyze at a much faster rate. It gives them the opportunity to collect more data for this purpose. The analytical tools that are currently being used are impressive but have limitations. AI will eradicate these limitations and allow Banks to perform analysis that will affect the way they do things in the future.
Automation
A lot of banking services are now automated, but AI is going to take it to the next level. Repetitive tasks are easily handled by artificial intelligence. This means more people will have more time within the Banking institutions to deal with personalized services for clients.
Language Processing
AI not only can react to verbal communication, but it can also understand text that has been typed. This opens up additional communication conveniences for the clients. Responses will be much quicker, which in turn will enhance customer service.
The Bottom Line
Overall the financial institutions seem to be excited about what AI is going to bring them. In regards to the general public putting their financial information in the hands of AI, there may be some skepticism about this. It will all come down to let’s wait and see where this leads.
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