By Tanja Zimmermann
Artificial intelligence (AI) is changing the financial ecosystem significantly. The success of a new technology, however, always depends on its acceptance by users. If users are open to innovation and recognize the added value and the facilitation that they provide in their everyday working lives, then a technology becomes a real benefit.
This is also demonstrated by a recent study conducted by Nvidia. More than 200 companies were asked about their willingness to actually use AI in financial services. The results are promising. More than 80 percent of respondents are convinced that AI is important for the future success of the company. And one-third of respondents believe that using AI in their business will increase success by 20 percent or even more. In this regard, the approval for the use of AI in companies is primarily due to the improved accuracy of AI technologies.
The benefits of AI
For investment firms and financial services companies, AI is most significant for portfolio optimization and algorithmic trading optimization. For commercial and retail banks, the greatest significance is an improvement in operational efficiency. This is partly about increasing the efficiency of transactions, but also about protecting data, fraud protection or preventing money laundering. One of the greatest benefits that AI enables financial service providers and banks to achieve is to monitor their risk exposure more closely. As a result, capital resources that are freed up can be optimized in real time. Different impacts of scenarios can thus be determined and optimized, and usually in real time. In addition, the use of AI helps to make internal processes more effective and transparent, thus contributing to a saving of resources.
The challenges of AI
Most respondents see the challenges primarily in an inadequate technology infrastructure and in the availability of data scientists. This is often accompanied by insufficient data in terms of quality and quantity. Many companies have so far seen AI mostly as a means to an end. But this is actually not the right perspective. It is much more important to embed AI in the management process. Then AI can unfold its actual potential and bring real benefits. Often, there are also concerns before the implementation. But after a certain phase of trial and error and learning how to use the new technology, it quickly becomes apparent that companies and direct users are convinced. They no longer want to miss out on the convenience that AI offers them.
As a conclusion: Positive growth outlook
As a result, the survey reveals several key findings regarding the current state of AI in the financial services industry. According to the report, for financial services providers, AI is a key factor for business success. This is reflected in the further development of high-value services. Also important to respondents is a reduction in operating costs and greater protection of customer and business data. Due to the enormous importance that artificial intelligence represents for business success, financial service providers are planning investments in the areas of infrastructure and model development. In this way, AI offers great growth potential in the area of financial and capital markets, and this is being recognized by companies.