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Artificial Intelligence is slowly making its way into every industry, making processes less complicated and operations more straightforward. AI’s impact on the finance industry is not just unmissable; it has changed and will continues to change the way people and businesses manage their finances completely. Increasingly, more and more significant financial decisions are being made with the help of AI as it significantly enables smarter and faster decision making. The key, however, lies in finding the optimum balance between humans and machines in order to maximise the ease and ability to perform these tasks. Artificial intelligence is a strong ally in the world of finance. From the way personal banking and trading has transformed unimaginably to how reliable risk management and financial forecasting has become; the finance industry is probably one of the biggest adopters of artificial intelligence.
The scope of AI’s use in processes which involve financial auditing is vast as it can analyse an enormous amount of data quickly, which is impossible for a human to do in even twice the amount of time. It has been able to establish automation in areas which require exceptional analytical skills and is replacing human analysts at a fast pace. This is not just reducing the cost of financial services, but also making them more reliable. Intelligent trading systems are now in place to analyse and process both structured and unstructured data in a fraction of the time it takes for people to do so to provide accurate forecasts based on multiple unbiased factors that are benefitting businesses more than ever before. Investments companies are progressively relying on artificial intelligence and data scientists to predict future market patterns because machine learning enables AI to crunch a tremendous amount of past data to make sound predictions free of bias and inaccuracies. Machines can also help financial advisors to foresee how market patterns, booms and recessions of the past, will repeat themselves in the future. This unparalleled combination of AI and data scientists as a resource is enabling and protecting all the stakeholders of the investment and trading world better. It is said, “Time is money.” AI is helping the world save and make a lot of money by saving precious time.
When it comes to security enhancement and fraud detection, AI is helping secure and protect both people and businesses across the world, and it is especially useful when it comes to preventing credit card frauds. AI can analyse and learn from your spending habits, location, and buying behaviour to quickly detect any unusual activity that is not in sync with your usual spending patterns to trigger a security mechanism that is increasingly useful given the millions of online transactions that take place every day. Moreover, the technology has been designed to continually keep learning which means if it wrongly prompts an alarm for a regular transaction and a person corrects it, it will learn from the experience to make fraud detection even more sophisticated the next time. AI is not just protecting people from financial fraud; it is also empowering them to manage their finances better. Personal financial management applications can now pull data from your digital footprint to draft spending graphs, segregate your spending, and analyse it in a number of ways to help you stay in complete control of your personal finances.
The use of artificial intelligence in finance has drastically reduced the cost of serving customers and has tremendously increased the convenience of doing so. Through various channels and platforms, AI has opened more doors into the financial world and is attracting a large number of people towards availing financial services. These services were always presumed to be arduous, expensive and time-consuming by most people, but the use of AI has made financial services much more accessible and easier to avail.
Gradually, data is becoming available in several dimensions, picking and using this data would become critical. But the fact is that when the industry starts using AI, the one who doesn’t use will become inefficient in the market place.Undoubtedly, AI is leading us into the future of finance, where processes are easier, faster, and more efficient.
By CA Mahmood Bangara, Chairman, ICAI Dubai Chapter