Finance can be said to be one of the first setters to accept Artificial Intelligence. With this acceptance, artificial intelligence is rapidly changing many processes, from investment research to the way financial institutions manage fraud. While traditional institutions such as banking are interested in incorporating new technologies, fintechs are adopting this technology faster as they try to catch up.

Financial institutions are rapidly adopting new technologies to stay ahead of the competition and increase revenue and profitability. AI is the first technology to help them improve the customer experience, drive revenue and increase operational efficiency. Research shows that this approach is growing fast and yielding positive results…

Financial Institutions, as organisations directly related to revenue, have been quick to recognise and engage with the benefits of using AI to increase revenues and reduce costs, and the magnitude of the win-win impact. This significant impact is also driven by the need to simplify the complexity of financial transactions, the need to process large amounts of data, and the increasing rate of fraudulent activity and customer growth. (McKinsey estimates that AI could be worth up to $1 trillion per year to global banks).

AI for finance: Why it matters

Financial institutions, as organisations directly related to revenue, have been quick to recognise and engage with the benefits of using AI to increase revenues and reduce costs, and the magnitude of the win-win impact. This significant impact is also driven by the need to simplify the complexity of financial transactions, the need to process large amount of data, and the increasing rate of fraudulent activity and customer growth. (McKinsey estimates that AI could be worth up to $1 trillion per year to global banks).

AI’s contribution to the financial industry;

Improved and personalised customer experience: 89% of financial services companies will use AI to improve customer experience.

Improved operational efficiency: AI can increase operational efficiency with many effects such as identity verification, credit scoring, loan approval, portfolio optimization, automated reports and insights. Surveys show that 56 per cent adoption rate tends to increase operational efficiency.

Increased profitability and revenue: 72% of financial services companies have identified increased revenue as the goal of adopting AI in their organizations. While cost reduction and profitability are important for every corporation, they are of primary importance for financial companies.

Improved Fraud Detection: In 2022, Consumers reported losing $8bn to fraud. Especially in the financial sector, the risk and total costs are much higher. As such, AI provides a high added value by outperforming traditional fraud prevention solutions by analysing large amounts of data and detecting trends.

The AI Index report tracks, collates, distills, and visualises data related to artificial intelligence (AI). Our mission is to provide unbiased, rigorously vetted, broadly sourced data so that policymakers, researchers, executives, journalists, and the general public can develop a more thorough and nuanced understanding of the complex field of AI.

AI has been a game changer for data scientists, analysts, line managers and team members. The ease with which information can be collected and the ability to analyse and make sense of it without an engineer with AI support has completely changed the quality and scale of output. The ability to automatically retrieve, identify and quickly analyse relevant information from structured and unstructured data sources increases the relevance and impact of analysts and managers, making the entire process more efficient and effective.

Using new AI tools such as BASEQ AI as an Enterprise Copilot helps analysts, data scientists, team members and managers summarise large amounts of data quickly and diversely, resulting in more effective and accurate results. With an Enterprise Copilot, each member works many times more efficiently and accurately in their work, and has a stake in high return items such as improving output values and productivity.

While 75% of financial companies that benefit from AI use it for content summarisation, 62% use it to identify patterns in data and trend detection.