AI and Future of Finance
Financial operations have great importance in functioning of any economy. In last one decade, the areas of finance functions widened and it also include risk management services. Artificial Intelligence (‘AI’) is gaining importance in the world of finance and it will be a game changer for the corporates and the finance professionals as the finance operations are full of challenges and complexities.
AI is system which perform the tasks with a great intelligence. Such intelligence can be compared with the intelligence of human and in some cases its more than human. In the finance operations, the intervention of AI will definitely reduce chances of error and it will also reduce time & efforts. On the other hand, it would be important to analyse to what extent reliance can be made on AI in the finance activities. Before implementing AI, finance professionals have to make sure about the quality of data and understanding about the machine which will artificially apply its mind.
In order to understand the role of AI in finance, it would be important to understand Machine Learning:
Machine Learning is a technique that design more intelligent computer systems. Machine learning enable the computer to ‘learn’ the necessary actions involved in processing a talk. This process involves using a large data set that the computer algorithm can repeat to learn through trial and error how to connect input data. Once this is learned, the algorithm can be used for getting great results.
In nutshell, organisations should evaluate which functions or processes are taking more than the normal time for execution and accordingly they can decide to implement AI in those processes. Further, finance professional cannot continue to do what they have been doing. They have to adapt with the new technologies and its implementation. Future of finance is all about finance professional working along with AI. The finance professionals have to make sure that they keep themselves relevant in the era of continues disruption and that can happen only when they consider and adapt AI and related technologies as key part of their overall responsibilities.
In several years, the world of automation and AI would be considered as new normal. However, humans should be ready with uncertainties as AI cannot solve problem of uncertainties in the lives of human beings. AI cannot bring true happiness in the life of humans. Humans should keep trying to find ways and means to face uncertainty and to become happy in disruptive times.
Interesting Time ahead…..