Some 80 per cent of the underlying data being processed in the financial services sector remains either semi-structured or not structured and has to be processed manually, says George Roth in a must read article, for every business leader. This article is part of a 16 page report on ‘Artificial Intelligence for Business’, published on December 15, 2015.
The financial services industry was one of the first commercial sectors to deploy AI in mainstream business decision-making. Citibank, for example, was working on first generation expert systems as far back as the 1980s. Such interest is not surprising given the sector’s reliance on massive amounts of data. On top of structured data about millions of transactions held by every financial services business, Reuters publishes 9,000 pages of financial news every day and Wall Street analysts produce five research documents every minute.
George Roth, chief executive of Recognos Financial, says some 80 per cent of the underlying data being processed in the financial services sector remains either semi-structured or not structured and has to be processed manually. With AI, firms can analyse and contextualise such data almost instantly. AI technologies being applied in financial services include natural language processing, data mining and text analytics, semantic technologies, and machine-learning.
IBM has identified the sector as a customer for its Watson AI system, which uses natural language processing and machine-learning to glean insights from large amounts of unstructured data.
IBM says the “ultimate financial services assistant” is capable of performing deep-content analysis and evidence-based reasoning to accelerate and improve decisions. For example, a bank could use the system to make better recommendations of financial products based on comprehensive analysis of market conditions, the client’s past decisions, recent life events and available offerings.
Another application is in compliance, fraud detection and security. Integrating structured and unstructured data ensures compliance rules are being applied and can help to detect offences, such as money laundering and insider trading. Natural language processing systems can uncover subtle cues in transactions that might indicate behaviour that does not show up in the numbers.
So-called “know your customer” systems are another widespread use of AI to manage unstructured and constantly changing data in order to assess risk.
Top 5 sectors using artificial intelligence
Published in The Times
December 15, 2015
By Michael Cross
Full article available here: http://raconteur.net/technology/top-5-sectors-using-artificial-intelligence