AI Gaining Traction in Financial Services Industry

AI Gaining Traction in Financial Services Industry

October 12, 2017         Written By John H. Oldshue

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.



The information contained within this article was accurate as of October 12, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : No Annual Fee, Bonus Offer, Cash Back
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time