Artificial intelligence (AI) in banking isn’t a brand new idea. The ability for machines to interact and learn to complete tasks previously done by humans goes back decades. The availability of data, open-source software, cloud computing, fast processing speeds, and the adoption of AI are contributing to a massive disruption of an industry that impacts virtually every consumer and business alike: banking. This has significant implications for financial institutions as new technical capabilities and contextual mobile services can help them stay relevant in the market.
It seems like every week there’s a technological breakthrough where a new task is completed using AI. From Siri to Amazon’s Alexa, the idea of having a personal assistant to help tackle everyday tasks is becoming more welcomed by users everywhere as consumer expectations are at an all-time high for personalization.
AI can be used in different ways in varying industries, ranging from less robust applications — such as Apple’s Siri — to more complex deep learning algorithms where a machine can function similarly to the human brain. Although “strong AI” is still in the distance, we are seeing technical capabilities advance with every passing week.
What is artificial intelligence? It can be classified as a group of related technologies including natural language processing, machine learning, and expert systems.
These functionalities will comprehend and behave equally to however the human brain will, that have already reworked the approach during which corporations consider the client expertise.
The McKinsey Global Institute separates AI into five broad categories: computer vision, natural language, virtual assistants, robotic process automation, and advanced machine learning. The research institute predicts that by 2030, 70% of companies might have adopted at least one type of the AI technologies listed above. The banking industry has generous experience leveraging data insights, but for the most part, banks have yet to build scalable AI strategies focused on creating value for their customers.