Artificial Intelligence in the Financial Industry
By Kim Rittmeier, Marketing, DEI Incorporated
“The financial industry is undergoing a tectonic shift from the traditional bank to innovative fintech. Artificial Intelligence (AI) is playing a huge role in accelerating that transformation,” according to an article in Forbes.
So, where is AI’s place in the financial industry? According to the US Department of the Treasury’s “Artificial Intelligence in Financial Services” report (December 2024), the use of traditional machine learning can be traced back to the 1940s. But its uses have expanded, especially in recent years due to massive leaps in technology. Now AI is deeply integrated in fraud detection, risk assessment, algorithmic trading, and even customer service areas such as chatbots and 24/7 virtual assistance.
Overall, AI is being used to perform the more mundane tasks and deal with large datasets – allowing humans to focus on the fewer, more difficult problems and the customer in front of them and provide valuable insight to support better decision-making in business operations.
Instead of technology replacing staff members, AI has evolved into a tool to assist back-office operations, allowing humans to interact with…humans. Despite fears that we are heading towards an “I, Robot” future, technology currently is working toward assisting us mere humans.
Originally, I researched AI believing it would take over the role of in-person staff. Imagine my surprise when I learn it can be another tool in their arsenal to efficiently assist customers with more in-depth questions and problems. Where there is a need for in-person assistance, there will be branches – no matter how large or small.
For now, AI is not the ghost in the machine that I assumed would take over the planet some day. Instead, traditional AI is human trained to be of assistance. Generative AI is the next step, and the effects of that could be more interesting.
Forbes
US Department of Treasury
