Impact of AI Adoption in Current Trends of the Financial Industry

Summary

The banking industry is undergoing a transformation with the adoption of AI technologies. AI technologies help banks in real‐time analysis of their vast data and make them more efficient, secure, and profitable. AI technologies enable banks to understand customer behavior, detect fraud, and make informed decisions about investments and loans. In this chapter, we explored the key aspects of real‐time analysis of banking data with AI technologies, including their benefits, challenges, and the future implications. By analyzing transaction records in real time, AI algorithms can detect unusual patterns and flag suspicious activity before it results in financial losses. This can help banks reduce their exposure to fraud and enhance their reputation for security and reliability. Cross‐selling opportunities, targeted promotions, and tailored recommendations are possible by AI real‐time consumer data analysis. As a result, customer engagement and loyalty could increase. However, as the accuracy of AI outcomes depends on the quality of data, banks have to invest in data management systems and processes. The need for human intervention will be reduced if certified AI professionals can be found who have the knowledge to develop and operate AI algorithms that can recognize increasingly complex patterns, analyze outcomes, and integrate them into bank operations.