For some time now one buzzword that gets dragged around meeting rooms of banks, financial institutions, insurance, regulators and startups is Artificial Intelligence knows many different definitions, but in general it can be defined as a machine completing complex tasks intelligently, meaning that it mirrors human intelligence and evolves with time. (). The challenge that many in the financial services sector face, however, is the growing list of terms that are being liberally swapped with .
For instance Gartner includes terms like , prescriptive analytics, , machine , cognitive computing, Augmented Reality is a technology through which users can experience their surroundings with added visual effects. For example, one can see a restaurants ratings while walking by, or one gets information about special buildings on a sight seeing tour. Users wear a gadget of some sort, but are still aware of their surroundings. , Virtual Reality is an array of technologies in combination with head gear that lets the user submerge himself into different worlds. The algorithms build virtual landscapes which the user can explore by moving around or turning his/her head. , ensemble , deep Neural Networks are simplified abstract models of the human brain. Usually they have different layers and many nodes. Each layer receives input on which it carries out simple computations, and passes on the result to the next layer, by the final layer the answer to whatever problem will be produced. , neuromorphic technology, and the list goes on – into the taxonomy. But the reality is that the confusion stemming from is as much the diversity of views around the technology as it is the different interests among players in the market. A few things are certain: the that inspired characters like Data from Star Trek or Bishop in Alien will require massive technology resources, and possibly new computing paradigm such as the developments around quantum computing.
Why banks are drawn to
According to the Accenture Banking Technology Vision 2017 78% of surveyed bankers believe that will enable simpler user interfaces that will help banks create a more human-like customer experience. Seventy-nine percent predict that will revolutionize the way banks gather information and interact with customers. While 76% believe that within three years, banks will deploy as their primary method for interacting with customers.
Trends driving adoption
Genady Chybranov, director for Financial Technology Innovation at Hitachi Data Systems (HDS) lists Big Data describes data collections so big that humans are not capable of sifting through all of it in a timely manner. However, with the help of algorithms it is usually possible to find patterns within the data so far hidden to human analyzers. , cloud and the diametrically opposite states of increasing computing power while declining costs as key trends impacting the development of . “Big Data technology is creating massive amounts of data available to build models. The model is only as smart as the data it based on. Declining hardware cost is making projects more affordable while cloud is not only bringing more power to development but also lower barriers of entry,” he explained. At the same time he acknowledges different approaches to development. “From what I can see there are no general approaches to investing in among FI’s. Some are investing heavily in building in-house capabilities, others investing in companies or experimenting with 3rd party solutions,” opined Chybranov. […]