Continuous improvements in technology and the rapid growth of computing power mean that AI, a staple of science fiction for decades, is now becoming a reality. Products such as Watson, IBM’s cognitive AI service, are already helping businesses across multiple sectors improve their performance by analyzing unstructured data, using machine learning (ML) to build knowledge into their systems, and creating automated tools that can involve in natural language conversations.

Retail banks are participating in this revolution, and a survey of financial executives carried out by Narrative Science and the National Business Research Institute found that 32% of respondents stated that their employers were already using predictive analytics, recommendation engines, voice recognition, and other AI-related capabilities.

AI encompasses a wide range of technologies, including robotic process automation (RPA), natural language processing (NLP), advanced data analytics, and image analytics. With the use of these technologies will help banks improve both front-office and back-office processes. Many of their data-driven back-office processes are high volume and repetitive in nature, and hence are ideal candidates for intelligent automation. At the front end, the majority of customer interactions are occurring through digital channels, there is also considerable scope for AI to improve the quality of and add value to the user experience.

AI technologies such as NLP have enabled the creation of chatbots and virtual assistants, through which banks can communicate and impart information to their customers. Banks are rapidly adopting these tools, with a survey by Personetics, a specialist in cognitive financial services applications, finding that nearly half of financial institutions are actively working on chatbot projects and more than three quarters believe chatbots will become commercially viable products within the next two years at most.

The most effective chatbots will successfully integrate several technologies, such as NLP, ML, and predictive analytics, to offer a fully rounded user experience.

By implementing artificial intelligence technology, banks would see costs cut dramatically, along with improved functionality and increased assistances. With the ability to find, gather, and analyze large amounts of data promptly then decode those findings with brain-like intelligence, AI can detect points of compromise as soon as they occur, which will help in fraud detection as well as prevent the theft of funds and personal information. Well-Known Companies like MasterCard and WorldPay have been using AI from several years to detect fraudulent transaction patterns.

AI technology plays an important role in credit risk management by accurately predicting which customers are more likely to cancel their service or default on their loans. Its data summarizing analysis can determine if someone is of high or low risk by scouring through variables and values of relationships, co-factors, interactions, dependencies, associations, and more. Anything is possible with the automation of due diligence.

Bank of America is launching an AI bot for its smartphone app former in the next year. Named Erica, the bot uses artificial intelligence and predictive analytics to acquire your personal spending ways. It will also give notification if you spend more than usual on certain products, offer ideas for reducing debt, give you tips for saving money, and alert you if something happens to your credit score. Capital One customers are also enjoying with the new AI functionality with which there is an option to pay their bills using only voice commands. And PayPal announced plans to offer their payment services on the Facebook Messenger platform, all made possible by the implementation of artificial intelligence in the fourth coming years.

According to market estimate,  the economic impact of the automation knowledge will reach $6.7 trillion annually by 2025. Artificial intelligence continues to gain thrust across the financial industry with the help of companies like Intel. Intel will release its new Application Specific Integrated Circuit (ASIC) named Lake Crest later this year, With the acquisition of tech giant’s startup Nervana,. This processor is custom-designed and enhanced for deep learning, which is a core AI technology inspired by the neural networks of the human brain. Intel plans to integrate the Nervana technology with its Xeon processors in a project called Knights Crest. And by 2020, it’s projected to increase performance by a factor of 100.

As you can see, artificial intelligence is no longer just the stuff of sci-fi movies. It’s all around us, and it will continue to expand, and learn, and grow smarter and more effective the further it merges human insight and deduction with automation and analytics.

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