For the uninitiated, AI platforms are gaining more visibility and traction in investment management and financial advisories. Machine learning technique through neural networks are increasingly used to create intelligent platforms. These networks made of millions of artificial neurons can continually learn about relationships and actions that are required to complete tasks. Continually learning weakens unwanted links, sustains needed ones, till an acceptable outcome is achieved.
AI powered platforms continue to learn by mixing and matching structured and unstructured data. For example, artificial neuron links can combine data on age, Facebook history, credit card usage, and loan history to arrive at a fool proof credit score. The data crunching ability is evident in faster adaption of these platforms in terms of regulatory changes and compliance issues.
AI is the face of financial management 4.0
AI is revolutionizing industries across the world and the financial domain is no different. The technology has yielded great dividends through streamlining of work processes, reducing man-hours spent on mundane administrative tasks and better connectivity for customers. Right now, only 15% of banking organizations are using AI powered advisors. But analysts have no doubt that this number will see an exponential increase in the next decade.
Investment in AI has increased six-fold and the share of jobs requiring AI skills have jumped up by 400%. Recruiters are looking for machine learning and NLP skills in their candidates. According to IDC, the triumvirate of retail, banking and healthcare will make up over half of the world-wide spending on AI.
So, are human financial advisors on the way out?
The answer is No. AI will re-invent the roles of financial advisors. New vistas in cognitive computing, Machine Learning and NLP will enable machines to learn, understand emotions and act accordingly. Machines can rapidly crunch historic data, numbers and client requirements to propose relevant solutions with contextual conversations.
On the other hand, humans will move over to the new role of nurturing relationships. Much of their energy will be expended on strategic and creative pursuits like relationship management, financial planning and new innovations. It is thus a win-win situation for all.
The road ahead….
The future is happening now. AI platforms have already taken over a large majority of banking, financial and investment functionalities. The adage is to remove human intervention on mundane tasks and provide a seamless and contextual user experience for customers. AI powered platforms are an ideal vehicle where the combined might of man and the machine is used to improve productivity and user experience.