Artificial Intelligence in Finance
Updated: Mar 26
How AI is transforming finance & financial services
Discussions around Artificial Intelligence (AI) are everywhere, with many businesses and, indeed, industries expecting AI to transform processes, procedures, and customer experiences. But, what about Artificial Intelligence in finance? Here, we’ll explore how AI is transforming finance & financial services.
Artificial Intelligence in finance
When we talk of Artificial Intelligence in finance, we’re also talking about Machine Learning (ML); the ability for machines (such as computers, smartphones and tablets) to learn & adapt without following explicit instructions; achieving this by using algorithms and statistical models to analyse and draw inferences from patterns [in data].
And, although AI and ML may seem like futuristic concepts, basic and relatively simple forms of AI have been seen in the financial industry for quite some time - in the form of elements such as ChatBots, fraud detectors, and task automation; serving to make, not only the customer experience both meaningful & enjoyable, but enhance the work of the employees behind them.
However, as AI becomes more powerful and widespread, and the potential for AI is increasingly realised, what more could AI provide the financial sector?
The benefits of AI to the financial sector
There are a multitude of benefits to using AI in the financial sector. Broadly, many of these include:
● Frictionless customer interactions possible 24 hours a day, 7 days a week
● A reduction in the need for employees to complete repetitive work
● Minimising the risks of human error
● Saving time and money
Within this, when looking specifically at corporate finance, AI is especially useful in enabling businesses to better predict and assess loan risks; improve loan underwriting and generally reduce financial risk.
What’s more, AI and ML can also lessen financial crime and the risks thereof, due to aforementioned fraud detection - a considerable benefit of this growing technology.
Increased reliance on apps and integrated systems
And, as the benefits of AI and ML to the financial sector gain traction, so too increases the amount of businesses investing in technology - apps and integrated systems - to improve their financial processes, whilst minimising risk and increasing productivity.
Of course, a great example of this is CreditForce - our award-winning credit management software that enables you to optimise your cashflow - seeing a 30%+ reduction in DSO and a 50%+ increase in productivity; allowing you to automate your collections processes and measure A/R performance via interactive dashboard reporting and analysis, among many other benefits.