Artificial Intelligence isn’t what you think it is. Despite being a longstanding trope of Hollywood, it’s not all killer robots or machines that can cry. Instead, AI is a useful technology that is all around us. We may not be able to order drinks from a robot butler like in The Jetsons, but AI helps us do all kinds of things, every day.
At its core, AI is technology that mimics or replicates human behavior and thought processes via machine learning. The DNA behind machine learning is simple: the more we interact and use a platform or technology, the more it learns about us.
AI isn’t scary
Despite the outlaw allure of worlds like Blade Runner, Westworld, Iron Man, and Tron, we’re still a long way away from our world melding with machines. Still, today’s technologies are driving the voice and non-voice supported interactions housed in everything from our watches to a specialized speaker in our kitchens.
Over the last few years, we’ve seen an explosion in companies developing machine-based analysis techniques, otherwise known as artificial intelligence. AI affects how we live, work, buy things, and how we consume most of our media. In all of our pockets, we have Siri and Alexa. Even companies like Netflix, Hulu, and Walmart are finding ways to use AI to enhance the user experience.
Social media is run by waves of predictive algorithms that affect what you see and consume. Thanks to machine learning, these platforms know what you like and who you’re secretly paying attention to, even if you’re not following them.
Car assistance apps like Waze update maps by the second and Google can predict what you want probably before you finish the first sentence. What’s crazy is the technology is in its beginning stages.
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What is AI, exactly?
Artificial Intelligence is a system that can learn. It is a system of commutative networks that reach meanings or connect the dots on an issue without relying on a pre-defined knowledge infrastructure to base its choices on.
Basically, AI gets smarter every time it’s used or its data is accessed. Each time AI interacts with our data, it gets better at predicting what it’s being asked.
It’s not surprising that the world’s biggest companies are investing heavily in artificial intelligence:
- JP Morgan Chase
JP Morgan Chase doubling down on AI is telling for the future of the technology. Because there’s so much data within the financial world, this is the perfect use case for a worldwide financial institution to make significant changes to how they interact with customers.
By learning how their customers spend, save, or access their accounts, JP Morgan Chase can detect and prevent fraud, provide better customer service, as well as keep an eye on developing markets.
By 2020, the financial services industry could reap up to $512 billion in new global revenues through intelligent automation. – Capgemini Digital Transformation Institute
The average fintech customer wants to keep up with their finances immediately. They need to know how their books look, or how money is flowing in and out. And they want to know if there’s any way to fix a broken process, which could save countless dollars. Because AI is continually searching and mining data for outcomes, as well as keeping track of usage and adoption, it recognizes better ways to streamline and can call out critical errors, too.
What Else AI Can Do for Fintech:
- The technology is smart, it’s always evolving, which helps remove friction and allows for faster adoption
- It provides unique personalization that can go above and beyond human capabilities
- The system continually updates, which gives users a real-time look at their finances, bringing them closer to their finances than ever before
- Instead of focusing on the product, AI shifts the focus to the customer and their experience – it’s not about bells and whistles, but the value
AI’s Everyday Practicality
AI’s capabilities are endless, but one of the most significant uses of this technology is that it helps automate tedious tasks. Instead of making a tier one support agent answer the same “did you turn it off and on again” questions, AI based systems can handle the issue and direct the customer to an answer located in a knowledge base (or just an easy-to-browse library). Another pro is that because AI learns to see patterns, it can point out mistakes. In the long run, this can help your company save money and time.
With machine learning making software smarter, AI will revolutionize our world as we know it. No matter how scary Hollywood wants to make Artificial Intelligence, the Terminators haven’t descended from self-driving helicopters yet. Relax and enjoy the new technological breakthroughs. There’s no stopping AI’s evolution.