AI is expected to add $13 trillion to the global economy within the next decade. It is helping to make the world a faster and smarter place, so every savvy investor and wealth collector needs to pay attention to it. AI is not a passing trend that will one day become popular; rather it is at the centre of every leading industry in the world today.
American computer scientist, John McCarthy, who was also one of the founders of the discipline of artificial intelligence, defined AI as “the science and engineering of making intelligent machines, especially intelligent computer programs. It is related to the similar task of using computers to understand human intelligence.”
The financial world has evolved and developed smart solutions to keep up with the unique needs of consumers in the digital age. Here are few ways that AI has changed and is changing the world of finance and investing.
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Technology is currently being used to spot credit card fraud and money laundering by monitoring large deposits and unusual activity. Money can be moved around very quickly online and this has caused an increase in fraud. AI-based systems can now analyse normal customer behaviour and quickly detect when something is out of the ordinary.
AI applications are used to regulate the supply, demand, and pricing of securities. They are also able to accurately predict stock performance by analyzing past data. Furthermore, AI systems can provide more personalized investment options by taking into account the investor’s goals, and previous financial habits.
Personal banking applications are also a product of AI and they are used to provide customized services to the consumer at the touch of a button. Customers no longer need to go to the physical bank branch to carry out routine tasks such as checking balance, requesting statements and monitoring account activity.
AI is transforming the financial markets by ensuring increased accuracy in analysis, predictions and trading decisions. Smart advisers in the stock market can analyze a massive amount of data and carry out trades at a satisfactory price.
Also, National Association of Securities Dealers Automated Quotations (NASDAQ) is using artificial intelligence to detect irregular and potentially malicious trading activity on the U.S. stock market. In the area of forex, AI has brought massive improvement through predictive analytics programmes which identify market patterns and make fewer errors in processing data.