What is the impact of artificial intelligence on the finance sector?

Posted by Fed Finance Canada in Fed Finance news
Posted at 27/06/2019

Since the emergence of big data, which concentrates an unprecedented amount of information, the use of artificial intelligence has literally exploded. According to one report, it could potentially increase the profitability of sixteen economic sectors by an average of 38% by 2035. The finance sector is one of them, with 32% of its managers already using it. In fact, the benefits of artificial intelligence for the financial sector are manifold.

Artificial intelligence as a banking tool

In recent years, a number of banks have adopted artificial intelligence to improve their services and simplify their internal accounting. Using different software, they enhance both their accessibility and security.

AI provides better access to financial services

Artificial intelligence enables banks to optimize their financial consulting services, notably with the help of software based on data processing. These provide real-time analysis of customer information, allowing conclusions to be drawn that can be easily exploited.

Chatbots, which assist clients on the banks' websites, save time for advisors, who can then focus on issues with higher added value.

Some institutions go even further. For instance, fintechs that use robot advisors to provide 100% online account management. This of course reduces structural costs and increases commercial efficiency.

AI simplifies decision-making

Contract analysis can be difficult and complicate some important transactions. This analysis has been simplified with artificial intelligence, thanks in particular to certain computer programs capable of simulating different variants of a scenario to determine its impacts. Informed decisions are then easier to make.

Better security thanks to artificial intelligence

Artificial intelligence also makes it possible to detect unusual banking behaviour more effectively, which leads to better fraud monitoring.

Artificial intelligence: a revolution for the market economy

Artificial intelligence has brought about a true revolution in major trading centres and even in the market economy in general by facilitating transactions and data analysis.

The analysis it offers focuses not only on the figures, but on a wider range of information, taking as much information as possible into consideration. Social media posts, corporate communications, legal news, and other relevant information are compiled very quickly to effectively guide market actions.

In addition, some applications use artificial intelligence to track stock prices and make decisions about buying and selling, while regularly changing strategies. They are therefore perfectly in tune with market dynamics.

Finance workers are also impacted by this revolution

In short, artificial intelligence is destined to transform the financial sector in a profound manner and even revolutionize its operations. This approach, which has already been well implemented in some institutions, will undoubtedly lead to the opening of new specialized positions in the finance sector. If you have received training in artificial intelligence, an employer may well need your skills.

At Fed Finance, we can also facilitate contact between candidates and employers in the finance and accounting sector. Contact our recruiters to find out how they can contribute to your career or the success of your company.