Artificial intelligence is poised to change how companies do business and the financial industry is no exception.
AI has become a hot topic thanks to changing legislation across the world combined with new digital innovations and plenty of investors looking to leverage the interest in the technology.
In fact, 74% of banking executives believe AI will transform their industry completely, according to research from Business Insider.
As FinTech Global has reported before, this could help financial services improve their customer services, their risk and fraud prevention processes and to strengthen the back office platforms.
Speaking at a panel during Sthlm Fintech Week earlier this year, Sten Forseke, founder of Greater Than, the InsurTech company, suggested that companies look “more at processes rather than at the function of the back office” and replace old analytical processes with AI.
“It is so much smarter than the human brain,” he said. “It perfectly fits there. AI is not fit for where you need eye-hand coordination. Not yet, because you are lacking computing power. So that’s a problem. Look at processes and replace them with AI. Easy, right?”
But as many financial vendors start to look to utilise AI, they should be aware of the ethical pitfalls using the technology can entail. Brian Clark, founder and CEO of RegTech startup Ascent, recently discussed the role of ethical thinking in AI in an online talk, urging industry stakeholders to consider things such as bias, wealth distribution and potential job losses due to the introduction of AI.
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