The financial services industry has seen the buzz over artificial intelligence (AI) before, but will the result be different this time? In its current form, AI is augmenting human intelligence and deriving insights at a transactional level. In the future, however, AI could help process data to build new algorithms around financial services.
Since its inception in the 1950s, AI has seen at least two major hype cycles and long winters of disillusionment. Although AI – in its purest form – just underwent its longest disillusionment cycle (1990s - present), AI’s supporting and ancillary tools have thrived. This has unleashed a new wave in applications of artificial technology, many of which have seeped into fintech. Financial services have been revolutionized by the computational arms race of the last twenty-plus years (...) entering a new wave of possibility on how to leverage AI by enabling computers to watch and learn. While most “AI” businesses today are built around machines making decisions, they don't really deploy AI, in the true sense of the word. In actuality, these businesses are using data-intensive technologies that will help companies get closer to implementing “true” AI in commercial applications.