Every financial decisions (eg. grant a loan, rate a bond, make an investments) require quick and fact based judgement calls.
The decisionsshould not just be based on emotions.
These decisions should be based on facts such as balance sheet data, income statement data, analyst forecast, fundamental data from the market etc.
We can use these fact based judgement and use Artificial intelligence and machine learning algorithms to make automated decisions.
AI and Machine learning algorithms always comply with laws and regulation if they are programmed to do so.
Risk managementAI can assist financial firms in identifying and reducing possible risks and provide strategies to tackle them by analyzing previous data and market trends.
Cost saving-Automation reduces costs and increases speed.-Financial operations are based on predefined rules. So, by automating these rules, AI in finance can reduce costs and increase speed.
Also, traders on the market can buy or sell quickly. Thereby, increasing profits and minimising losses.
Faster transactionsAI in finance can speed up transactions and reduce wait times for customers.
5.Enhanced customer experienceArtificial Intelligence in finance analyze a vast amount of data and build predictive models that aid in taking better decisions in the field of finance.