Artificial intelligence has the potential to dramatically reduce costs and increase productivity in the financial services industry. AI has broad utility; it can help banks extend more credit, enhance the customer experience, improve fraud detection, lower the cost of offering services and more. With widespread adoption of AI comes challenges, however, including a lack of regulatory clarity, complex systems integration and a need to develop niche expertise before incorporating the nascent solution into a bank’s platform.
AI is a catch-all term that generally refers to a number of technologies capable of analyzing data and identifying patterns to make a decision and effect an outcome.
The revolutionary potential of AI has long-captured the imagination of the public. A combination of technological advancements, increased interconnectedness and the granularity of available data have led to both real-world applications and renewed excitement about the technologies housed within AI. As AI continues to evolve, access to systems that utilize it will become increasingly available to even the smallest financial institutions.