AI Gaining Traction in Financial Services Industry
The term artificial intelligence, or AI, gets many people thinking about a Sci-Fi dystopia future where robots are calling the shots. Current-day AI is a lot less dramatic, but it is already a part of our day-to-day lives.
PWC conducted a study to see how financial services institutions were using artificial intelligence. The focus of their study was on “weak AI,” which describes machines that can perform specific tasks that usually require human beings, such as decision-making, language translation, speech recognition and visual perception.
Their research found each industry is using AI technology in different ways. More than half (54%) of insurance companies are using algorithms to streamline claims and fight fraud. Banks, on the other hand, are using chatbots to improve customer experience. And, more than one-fourth (26%) of asset and wealth management companies are using robo-advisors to help investors.
While more than two-thirds of U.S. financial services companies are currently limiting their AI use due to budget and other constraints, PWC concluded AI is a promising technology, as AI startups have raised more than $2 billion in venture capital funding this year.
Worried that robots may soon be making all of your decisions? PWC says that should not be a concern, at least not in the near future. They concluded that AI will slowly replace humans in functions such as digital labor, machine learning and personal assistants, but due to challenges in trust, bias and regulatory concerns, it is more likely we will shift towards augmented intelligence, wherein machines help humans.