Artificial intelligence (AI) is expected to drastically change the way most of us work. In fact a recent Goldman Sachs report found that as many as 300 million jobs around the world could be affected by AI and automation.
AI has the potential to enhance efficiency, reduce risk, and provide better services. Although some might consider that a double-edged sword, as this would lead to fewer jobs available to humans when tech can replicate (or do a better job) than what they can do.
Instead of worrying about not being relevant, finding ways to use AI for your work and being open to embracing tech changes will help you get a leg up in your career.
So, what are the ways AI is taking on new tasks and roles and how can one use AI to improve his or her job?
#1 Customer Service
Call your bank or mobile plan hotline and you will most likely speak to a robot.
AI-powered chatbots and virtual assistants are easily seen and heard in many business operations. These chatbots can provide customer support, answer queries, and assist with routine financial tasks, such as account balance inquiries or transaction history.
These assistants can provide round-the-clock services, even when the humans are asleep. They assist with routine transactions, which then improves prompt customer service response time while reducing operational costs.
Although it is harder to tell whether customers enjoy dealing with chatbots when facing issues they need help in solving immediately, AI firms have been tackling and refining the abilities of these machine learning programmes.
There is natural language processing (NLP) which enables these bots to understand and respond to customer queries in a human-like manner.
By relying on chatbots, it is easier for customer service staff to manage queries, as they can operate and “service” many clients at the same time, cutting away the uncomfortable complaining calls from customers and focus on the next actionable steps in solving clients’ problems.
#2 Chatbots For Financial Advice
AI-driven chatbots can provide users with financial advice, investment strategies, and information about financial products.
There are personalised AI robo-advisors that offer investment advice based on an individual’s financial goals and risk tolerance. These platforms can create and manage investment portfolios, adjusting them in response to market changes.
There are also AI-driven chatbots that can provide users with financial advice, investment strategies, and information about financial products. These bots can guide users in making informed financial decisions and managing their money.
Why is this useful? For financial advisors and those selling investment products to clients, it helps them to cut through the fluff. The chatbots can handle all the generic queries from customers who may not be fully committed in buying the products.
Instead of repeating themselves over and over to customers who are not fully committed, the sales personnel only need to call back clients who want to make a sale or have made an order with the chatbot. This frees up time for the salespeople to meet clients and build on client servicing.
#3 Risk Assessment
AI can analyse vast amounts of data to assess credit risk, detect fraudulent transactions, and predict market trends. This helps in making more accurate lending decisions and reducing financial fraud.
For instance, AI algorithms can analyse a wide range of data sources to assess the creditworthiness of individuals and businesses more accurately. This includes traditional credit data, social media activity, and transaction history.
Predictive models can identify potential defaults and risk factors, helping lenders make better lending decisions.
AI can also aid in fraud detection. The bots help to analyse transaction data in real-time to identify unusual patterns and detect fraudulent activities. Machine learning models can continuously adapt and improve their ability to recognise new forms of fraud.
Cybersecurity experts only need to refer to the results and analysis made by the bots to make strategic decisions, rather than looking at thousands of data reports manually like in the past.
This allows for early detection of risk behaviors too. For example, a banking customer who takes on too many loans will be detected by the AI algorithm and an alert can be sent to the banking professional to monitor the banking transactions. This allows for early detection.
With AI, credit approvals are also approved quicker and faster, allowing sales targets to be hit faster. For consumers, some banks have already embarked on using AI to approve credit cards (for online applications tied to your Singpass). With automation like that, it allows customers to have quicker approvals on financial applications.
#4 Voice Recognition And Security Solutions
Finance and Technology (FinTech) companies develop digital identity and authentication solutions to enhance the security and convenience of online financial transactions.
There is also the use of AI for voice recognition. For example, AI can be used for secure and convenient authentication in mobile banking applications. Voice assistants can also facilitate hands-free financial transactions and account management.
At shared meeting spaces, voice-activated assistants are a great enhancement to scheduling and using meeting rooms, and they can free up employees to focus on more important tasks. Voice assistants can manage tasks such as conference call setups to room availability and booking.
Voice recognition can also be used to handle banking and purchasing functions to reduce the friction between consumers and call operators.
#5 Speed Up Numerous Work Processes
Finally, the great speed tasks can be completed with the use of AI.
AI and machine learning can process and analyse financial data to uncover insights, trends, and market predictions often within minutes and without rest. These insights can inform investment decisions, risk management, and business strategy.
The use of automation, or Robotic Process Automation (RPA) for instance, can help to automate routine and repetitive tasks in the financial sector, such as data entry, document processing, and reconciliation, freeing up human resources for more strategic tasks.
Meanwhile, AI-powered trading algorithms can analyse market data, news, and historical patterns to make real-time trading decisions. These algorithms can execute trades with high speed and accuracy. Machine learning can adapt to changing market conditions and improve trading strategies over time.
Traders can head to bed knowing that their trades are being monitored, while data entry workers no longer need to manually enter the data from pieces of papers.
How AI Is Valuable For The Finance And Technology Sectors
AI’s ability to process and analyse large datasets, learn from patterns, and make predictions is particularly valuable in FinTech, where data-driven decision-making and automation are key components of success.
FinTech innovations have disrupted traditional financial institutions by offering consumers and businesses more accessible, cost-effective, and convenient alternatives. FinTech services often encompass a wide range of financial activities, such as banking, payments, investments, insurance, lending, and more.
They often leverage data analytics, artificial intelligence, machine learning, and cloud computing to improve the delivery of financial services. As a result, FinTech has become a rapidly growing and dynamic sector within the broader financial industry, attracting investments and business activities worldwide.
As FinTech continues to evolve, AI will play an increasingly important role in optimizing financial services and improving the customer experience.
Are you looking to boost your knowledge of AI and what it has to offer? Get ready for the future of finance by enrolling in the ChatGPT and AI In Finance Course by the National University of Singapore in partnership with the Singapore FinTech Festival 2023.
Participants will gain insights on how generative AI is transforming the finance industry and be equipped with relevant knowledge and skills to evaluate and use generative AI-powered tools and technologies in their organisations.
You can also consider taking a complimentary class on the Use of Generative AI in FinTech by S P Jain School of Global Management, in partnership with the Singapore FinTech Festival 2023. In this course, you will gain an in-depth understanding of what generative AI is and learn about AI use cases in the finance industry.
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