Leveraging Artificial Intelligence in the Finance industry
Artificial intelligence (AI) has been widely used across all industry verticals to attain operational efficiencies, better customer experience, and many other benefits. Finance industry can be attributed as the earliest pioneers of AI technology as they began researching with predictive analytics many years ago. Finance industry started using predictive analytics to anticipate stock market movements with the help of algorithmic models. Today AI tools have evolved into the High-frequency Trading (HFT) systems that execute millions of transactions in a day.
AI tools offer accelerated trading decisions which help financial institutions to make informed decisions for business growth. Many investment banks and hedge funds have been looking for opportunities to include AI and other related technologies into their processes.
Accounting standards and regulatory compliance requirements are regularly changing. Financial industry uses traditional solutions for middle and back-office operations that handle compliance regulations. These solutions are driven by hard-coded rules and processes that enable the inflow of structured data from external sources like custodians, security exchanges, and settlement systems. AI tools can provide innovative measures to make the middle and back-office operations efficient. These tools can be used to automate reconciliation processes, which will reduce the burden of exception management, enabling faster remediation of identified errors.
AI tools offer deep learning solution with Advanced Neural Networks (ANN) to recognize complicated patterns. This helps finance companies to gain valuable insights and make inferences through interpretation of data. Finance industry can also leverage machine learning (ML) techniques to reduce time and cost associated with data inquiries by providing adequate data sets. ML tools not only identify an issue, but it also suggests the proper course of action to resolve it. These tools use intelligent workflow automation to initiate appropriate workflow automatically.
AI tools can provide huge efficiency gains and cost-effective solutions to middle and back-office operations. Companies need to integrate AI tools with the software applications that support real-time access to all required data. However, effective implementation of this innovative technology requires in-depth domain knowledge and expertise on the part of service providers.
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