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AI combined with big data, cloud services, and hyper processing systems, helps institutions make significant business-related decisions at a quick pace. AI includes machine learning which analyzes a large amount of data, learns overtime with less probability of mistakes than a human analyst. As the demand for AI increases, its processes are getting more efficient in understanding data patterns; AI has established automation of intelligent analytics and clear thinking. These help organizations to understand their target audience and gain better insights to make strategic decisions.
AI is disrupting several industries, but banking is projected to highly benefit from AI adoption. To overcome many traditional banking issues, the banking industry is focused on leveraging AI-based solutions. It is estimated, by 2030, AI will save more than $1 trillion for the banking sector. Chatbots are self-help tools for improving communication, and enterprises can use it to enhance consumer experience that in turn helps generate more sales, and build a deep rapport with customers. Chatbots also help save investments in customer service as the number of customer service representatives would be less. Chatbots are used for fraud detection, offering investment advice, accounting and bookkeeping, and payments. The fraudulent transactions are tracked by detecting anomalies in statistical and behavioral patterns. AI bots have the complex computational ability and are reliable to keep track of accounting with high accuracy and speed. Botkeeper, powered by AI, is one of the popular tools for bookkeeping and accounting. Chatbots can also be used for making payments. PayPal, a payment-processing website, experimented this concept which enabled users to make payments through chat messages.
AI engineers have developed system tools that automatically conduct and compress data in a matter of minutes. AI and ML along with big data help banks analyze the data and make necessary predictions for improved efficiency. Neural networks, deep learning, and smart contractors are few of the AI methods that help organizations stay compliant. The better strategy to be deployed in banks is to develop a strategic alliance amongst the fintechs and the banks so that the services delivered can be easily modified with respect to the changing environment, especially in the retail sector. Intelligent Character Recognition (ICR) system help banks to recognize and extract data from lease agreements and loan applications which save hours of employees’ time. The speed at which the financial industry is progressing indicates the power of AI to help the landscape evolve and achieve its full potential.