Almost every industry has adopted the use of artificial intelligence (AI) to boost revenue, productivity, and customer satisfaction. According to a recent study, the financial services industry has one of the highest rates of AI implementation among the top firms.
Nearly 70% of companies already use machine learning and other AI solutions. It appears that the future of financial services may rely heavily on these new technologies.
How Is AI Used in Finance?
The frontrunners in the financial services industry have integrated AI into their core business strategies and processes to reduce costs, increase profits, and improve operations. AI implementations can be found in almost every area of the industry.
Current AI solutions for financial services include advanced analytics, machine learning, and automation. The most successful financial services firms use these technologies to address the following:
- Payment processing
- Regulatory compliance
- Fraud detection
- Risk management
- Process automation
49% of the top companies already have company-wide policies for implementing AI solutions and tend to recognize the importance of AI implementation earlier than their less-successful counterparts.
These findings come from a study published in August 2019 by a major consulting firm. It included interviews with over 1100 executives from the top-performing financial services companies.
Early Adoption of AI Leads to Greater Success
Based on the study, the most successful financial services firms were early adopters of AI technologies. These firms also tend to focus more on the use of AI for revenue growth and improved customer experience instead of cost reduction.
The study shows that the top firms integrate AI across almost every business process, spending millions on implementation. In fact, 45% of the top firms have already invested over $5 million in AI systems. 70% of these companies also plan to increase AI investments by at least 10% in the next year.
While the frontrunners in the industry spend millions on AI technologies, more affordable solutions exist for small to medium-sized businesses. Over two-thirds of financial service firms use machine learning to improve operations. The most used tools for machine learning are cost-effective enterprise services such as Salesforce and other automation systems.