AI, Machine Learning and the Financial Service Industry

Summary

The banking industry is rapidly changing, with a paradigm shift to digital‐only banks that leverage Artificial Intelligence (AI) technology and data to provide digitalized offerings and services. In the banking sector, companies have adopted AI by investing in the development of specific applications and created partnerships with FinTechs, tech startups and digital banks. The terms AI and machine learning are used interchangeably, but they are different. One expert identifies three defined levels of AI: Artificial Narrow Intelligence, Artificial General Intelligence, and Artificial Super Intelligence. In the Investment Management and Hedge Fund sectors, companies have begun and continue to deploy the latest advances in data analytics, data science and machine learning to develop complex quantitative investment and trading strategies to produce astounding results within the financial markets. AI is within Gartner Hype Cycle's peak of inflated expectations and will continue to have enormous impacts and future implications within the Financial Services Industry.