How AI Is Used in the Financial World Today
There is some history of integrating AI with the Financial World Today sector, even though it may appear fresh. “It’s important to understand that AI has been in banking for decades,” remarks Malcolm deMayo, VP of financial services at NVIDIA. “Financial services have used machine learning and early neural net versions for a long time.”
Artificial intelligence (AI) has been by the side of the financial industry’s leaders and strategists from the very beginning, from its first uses to its present-day complex algorithms. Its varied applications, which include risk management, tailored client experiences, and predictive analysis, prove its lasting importance.
According to a poll conducted by NVIDIA among around 500 financial experts, IT decision-makers are anticipated to utilize AI in the coming years to enhance consumer experiences, tackle talent shortages, and strengthen environmental and social sustainability frameworks. The following is information about three applications of AI:
Table of Contents
Artificial Intelligence, Real Cost Reduction and Surprising Value
Financiers have taken note of the fact that AI brings about a decrease in costs. In 2023, almost 30% of people who took the survey stated that AI helped with operational efficiencies, and 20% indicated that AI brought down the total cost of ownership. AI has the potential to improve banks’ computational capabilities. “The conventional computing in each bank’s data centre will not run AI efficiently,” asserts de Yo. New graphics processing units (GPUs) and software libraries from NVIDIA helped cut inference costs in half, according to deMayo, demonstrating how innovative technological solutions can meet data demands.
With the help of AI, businesses may save money by improving customer service, creating more robust fraud protection and detection tools, and facilitating the transfer of workloads across hybrid cloud infrastructures. AI can also assist C-suite IT executives in determining their technology investments’ return on investment (ROI). In internal projects and customer-facing endeavours, “there is an opportunity to unlock value,” deMayo argues.
At Your Service: Valuable Customer Relationship Cues
Nearly half of the survey respondents (46 per cent) report that AI has improved their customer experience. Accele ted lar language models make chatbots more effective and less frustrating, increasing customer satisfaction. “Banks have customers who expect the same experiences they get when they jump on their retail e-commerce experience,” deMayo says.
“AI is a huge set of capabilities to help banks deliver on that customer experience desire.” Loads of data that financial institutions handle can be used more effectively with AI. “We’re elping them shift through mountains of social news, financial news and financial reports to discover patterns, trends and ideas that they can trade against to deliver more value to their customers.”
How AI Can Help Resolve Talent Shortages
In response to a severe scarcity of workers, several banks and other financial organizations are investing in AI training for existing staff or actively seeking out new talent. On the other hand, artificial intelligence (AI) can help address these labour issues. “There’s an opportunity to leverage AI as a teacher that can teach at the pace of the individual,” deMayo says, suggesting that AI may facilitate new hire orientation, ongoing skill development for existing staff, and cross-training for existing employees.
For example, customers and bank personnel can benefit from better education made possible by big language models. According to DeMayo, algorithmic trading is one of the most prominent ways financiers have used technology to increase their returns for quite some time. He explains that financial institutions have long been offering their services through technology and employing many intelligent people.
The Surprising Curve Ball of AI: ESG and Financial Ethics
However, AI is about more than simply statistics; it’s also about the values and ideals that businesses live by. Of the 20 people who took the survey from NVIDIA, 72% claimed that their employer was aware of the moral challenges posed by AI. The survey takers’ AI strategies also incorporate sustainability, social and governance considerations.
“Every organization in financial services needs to be thinking about sustainable computing,” deMayo argues. “We have made great progress in the area of energy usage.” As a whole, AI offers a lot of chances for the financial sector to boost efficiency, save expenses, and create new income sources. The possibilities are endless, according to deMayo.
