Scroll
Contact us

Our clients tell us that we are open, honest and approachable. Please do not hesitate to contact us, we will respond to all enquiries.

Why is there a misconception of Artificial Intelligence in financial services? 10 SEPTEMBER 2020

Why is there a misconception of Artificial Intelligence in financial services?
5 minute read

Whether in business or social settings, everyone is talking about Artificial Intelligence (AI). Today, AI runs analytics while we sleep, it’s our portable personal assistant and can even drive us into the office. However, at work, when we are thinking about its implementation, we sometimes associate it as a risk – or something that we fear could cause detriment to our business.

In the current climate, we are more aware of risk than ever. COVID-19 has consumed our world. It is transforming the way that we live and work. Whether you’re applying for a business loan, mortgage holiday or even just managing working around kids, it’s has been a difficult time for everyone. And so your free time might be the best time to get to know AI and explore how it can help your business.

What is AI?

Simply put, Artificial Intelligence (AI) is the continuous adaptation of computers or computer systems to act on behalf of human intelligence. AI can replace human decision-making with automated alternative methods that are designed to learn and evolve over time. 

How is the financial services industry benefiting from AI?

The financial services industry is a high benefactor of AI. It can utilise many of its advantages to save time, reduce costs and add value.

In 2016, over $5 billion was raised globally in AI venture funding deals for financial services. 6.5% of this has been in the UK and progress has not stopped since then. 

Areas such as AI-driven customer chat rooms, data and credit risk analytics have all seen significant investment and growth, with companies reporting improvements typically 18 months post-implementation.

These are a few of the improvements seen post-implementation:

  • Faster and better service for customers
  • Staff occupying more business essential roles
  • Enhanced business efficiency

These benefits allow companies to maximise resources and focus on the bigger picture.

Why the misconception?

As humans, we don’t always fully understand the inner workings and logic of AI; there are almost infinite outcomes and complexity within deep learning that can make us feel uncomfortable. From virtual football to a self-run NHS, AI systems must be designed and executed in ways that are safe, protected, and ethical to protect your business from regulatory and ethical infringements.

Regulatory protection to aid adoption

The regulatory environment is trying to keep up with some of these issues, indeed there are some existing areas of regulation that can help. Data protection laws, customer protection, software maintenance are all helpful and important whether you implement AI or not.

Transparency of decision making is high profile, and AI is even being explored with regards to how it can help with this too, highlighting critical issues of AI, whether they are ethical or regulatory. The Information Commissioners Office has recently released an online consultation platform for the draft AI Auditing Framework Guidance. It gives advice on how to understand laws in relation to AI with recommendations and technical measures in order to mitigate any risks AI may pose.

So where can you find out more?

At Arum we are always discussing new ways to implement artificial intelligence into our clients’ systems and ways of working. And more importantly, we understand the risks and implications, so our clients and ourselves are always kept in check.

We are proud to offer a unique range of services like Robot Process Automation, Omni Channel Orchestration, Voice Analysis, Predictive Analysis and many more to your business.

Click here for a more detailed look into what we offer or please get in touch for a free consultation.

To gain further insight into COVID-19 exit strategy, download our free playbook.

 

Elliott Rathbone
Business & Systems Analyst
Arum

This site uses cookies, if you continue without changing your settings, we'll assume that you are happy to receive all cookies. Click here to learn more about cookies.

Continue

Request a Callback

Arrange a call back

One of our consultants will be in touch as soon as possible.