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Artificial Intelligence is using structured and unstructured data in financial services to improve the customer experience and engagement, to detect outliers and anomalies, to increase revenues, reduce costs, find predictability in patterns and increase forecasts reliability…but it is not so in any other industry? We all know this story, right? So what is really peculiar about AI in financial services?
First of all, FS is an industry full of data. You might expect this data to be concentrated in big financial institutions’ hands, but most of them are actually public and thanks to the new EU payment directive (PSD2) larger datasets are available to smaller players as well. AI can then be easily developed and applied because the barriers to entry are lower with respect to other sectors.
Second, many of the underlying processes can be relatively easier to be automatized while many others can be improved by either brute force computation or speed. And historically is one of the sectors that needed this type of innovation the most, is incredibly competitive and is always looking for some new source of ROI. Bottom line: the marginal impact of AI is greater than in other sectors.
Third, the transfer of wealth across different generations makes the field really fertile for AI. AI needs …
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