Is artificial intelligence (AI) changing the shape of the financial services sector, or is the financial services sector increasingly defining the shape of AI for business across all sectors? For the Harvard Business Review, many of the questions raised by the evolution of AI, such as “What will it transform?” and “How much will it democratise?”, are being answered by the way the finance sector is investing into and developing the technology. As the article points out, finance is the “obvious laboratory for exploring the potential effects of AI because information processing is the central function of financial markets.”
It’s a powerful premise. However, Deloitte has another view. The firm believes AI is disrupting the “physics of the industry, weaking the bonds that have held together the components of the traditional financial institutions.” So, is AI taking finance in an uncertain direction?
Well, no. It’s rather creating new opportunities.
Keeping these reservations in mind, Deloitte also said that AI is “opening the door to more innovations and new operating models.” A deep dive by the International Monetary Fund (IMF) revealed that this emerging technology is already nestled securely within the financial sector. Here, jobs for “AI help wanted” were booming at 3 600 as of June 2023, and it is predicted that spend on AI will increase to $97 billion by 2027!
These numbers suggest that AI is helping the sector to reimagine and reinvigorate systems, processes, and approaches. It is a precision tool for excising outdated and inefficient methodologies, creating room for AI infrastructure that increasingly meets the expectations of human customers. For example, the IMF highlights the use of AI infrastructure by Amundi SA to research macroeconomics and markets.
I believe that AI can be used to provide CFOs with data-driven insights that enable better business intelligence and growth. Here, the technology ensures transparent reporting and seamless automation while facilitating achievement of innovation objectives and KPIs.
Further attempts to integrate AI into the financial services sector must, however, be systematic and considered. The key challenge lies in finding ways to weave AI into existing systems while still being able to offer real business value. A calculated approach ensures that the technology doesn’t morph into a fancy gadget that doesn’t deliver on what it promises.
AI is capable and does add value, but there is always the risk that it can be forced into use cases that don’t merit its integration. The technology works at its best when enabling innovation, maximising business processes, and solving tough challenges by crunching data. In short, any AI integration must improve your systems and processes to be worth your while.
Take note. AI is more powerful than you think.
AI can knock your digitalisation efforts into shape while simultaneously introducing new processes that fit seamlessly into your existing infrastructure. In addition, it can continually optimize these new processes to ensure efficiency, increased automation, and improved customer experiences.
Mint is already providing financial institutions with AI solutions that add measurable value. We can partner with your business to help create data-enhanced scenarios for predicting outcomes and business trends that are based on intelligent and continuously improving models. Moreover, we automate and streamline information access and processing, so you get to see the benefits of AI integration throughout your organization.
In the hands of the financial services sector, AI is poised to find new avenues for helping organisations in all industries to reinvigorate old processes and deliver measurable value. Read our AI products page to learn more about this powerful optimisation tool and how it can benefit your organisation.