Will robots take over finance?
When you type ‘will robots take over?’ into Google, 9,890,000 results appear. It is one of the most confusing, intriguing and threatening impacts of technology in this day and age. However, despite the speculations people are making about the future, many people ignore the fact that AI is already all around us. Siri, Google Maps and Uber all use AI to make their usability more efficient. But what does Artificial Intelligence mean for the finance industry?
A major issue in the finance industry, especially in the private banking sector, is that organisations are finding it difficult to find the right balance between traditional and technological methods. Although implementing digital aspects into business models and plans is at the forefront of everyone’s mind, many struggles to know just how digital they should go. Will they lose personalisation? Will their customers interact more with machines than humans? However, artificial intelligence doesn’t need to take away the core values of financing or compromise employees in the industry. Instead, it can truly enhance many aspects of your organisation.
At the very heart of artificial intelligence are machine learning algorithms. As a piece of software is fed more data it continuously self-improves and ‘gets smarter’. This is a huge advantage for many aspects of the finance industry that deal with massive amounts of data every day. Below are 2 key examples of how machine learning algorithms can and are improving the finance industry.
Algorithmic trading – As stated by cointelegraph.com, Sentient Technologies has developed an algorithm that ingests millions of data points to find trading patterns and forecast trends. This enables it to make successful trading decisions and can do 1,800 days of trading in a few minutes.
Banking chatbots – Plum is an AI powered application that connects to your bank account and analyses your income and spending habits. It then predicts how much you can save. This is an innovative example of how organisations can go above and beyond to support their customers anywhere and at any time.
Instead of focusing on the cons of AI, we should be focusing on the questions we need to ask ourselves to ensure that we are ready to fully adapt to these inevitable changes and take advantage of the opportunities.
Do your employees have the required skills needed to implement and maintain AI technology? If not, are you able to acquire them?
Artificial intelligence needs people who understand the processing capability, the data and how to frame the problems. For example, although machines can learn to get smarter to produce accurate results, they can also learn the wrong way and become bias. This happens when the input data set, for example, is not representative of the outcome. This then needs to be identified and corrected before people rely on the produced solution.
Do you have opportunities to use AI that could improve your decision making?
Are there any gaps in your decision making that you feel artificial intelligence could fill? AI offers a lot of opportunities to become more efficient and make your solutions faster and more reliable for your customers.
Are you able to support the computational resources needed to deliver on AI?
Do you have the necessary resources to support the needs of AI? Are you able to implement them and how much will it cost? Do the benefits outweigh the costs?
To answer these questions and more, secure your place at the 28th annual Private Banker International Global Wealth Summit to hear from our expert speakers and attendees.
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