Throughout the world, artificial intelligence is changing the way that businesses across industries operate. Nowhere has this been truer than in the realm of banking where artificial intelligence is helping banks to streamline processes, help customers and detect fraud. Let’s take a look at three ways in which artificial intelligence is transforming the way that the banking industry carries out its daily routines.
Improving customer experience with chatbots
The most easily seen way in which banks are deploying artificial intelligence to help customers is through the use of chatbots. Chatbots began appearing in the early 2010s across many different industries. Since then, they have improved enormously. One bank in Australia uses a chatbot that is capable of handling up to 500 different customer service tasks and can recognize up to 1,000,000 different commands from customers.
While an obvious objection to such widespread use of chatbots would be that they are displacing human workers, this is not necessarily the case. On the contrary, the chatbots are best at handling routine, stereotyped processes that most humans would probably find boring anyway. This handling of the lowest-level and easiest tasks frees up the human agents to handle the more complex issues, helping to provide a much higher level of service to customers who are facing problems.
While fraud prevention measures, like spontaneously locking someone’s checking account, can often seem like a frustrating hassle, they’re able to save the banking industry hundreds of billions of dollars in potential losses each year. And those savings are inevitably passed on to the customer. Fraud detection has been one of the areas in which artificial intelligence has seen the most success. Previous to the use of sophisticated computer algorithms to monitor account activity, human investigators were responsible for detecting and stopping fraud. Given the huge amount of data monitoring that this task requires, it is something that computer systems have proven vastly superior at handling than their human counterparts.
Catching the bad guys
Those who commit fraud may be a serious problem in the aggregate, but they’re far from the worst bad guys. Today, artificial intelligence is being trained to handle full-fledged money laundering investigations, stopping people who may be responsible for some of the most heinous crimes imaginable. Increasingly, artificial intelligence algorithms can carry out basic investigations without any help from humans. This promises to potentially shut down organized crime’s use of the banking system for good.