As the digital world continues to conquer the physical world, the scope of digital transformation within businesses is constantly increasing. We live in an era of new business models, streamlining operations, and rapid development of new services and products. This kind of transformation is more and more determined by the use of Information and Artificial intelligence, and Machine learning. They not only improve the customer experience, but also change the way companies operate.
Artificial Intelligence (AI) and Machine Learning (ML) are important pillars of many organisations’ digital transformations. For example, we can now use AI for account management and customer service systems across industries. As a result you get better productivity and scalability.By definition, Artificial Intelligence is “a branch of computer science dealing with the simulation of intelligent behaviour in computers; the capability of a machine to imitate intelligent human behavior.”
Basically, AI capabilities allow a computer to analyse huge amounts of information and data to arrive at a “reasoned” conclusion about the subject at hand, simulating the human decision process, often with better decisions being made. On the basis of analysing user behaviour, streaming services can more accurately tailor recommendations and push targeted content with greater opportunity for engagement.
With the advancements in machine learning, Artificial Intelligence is considered as a key driver in digital transformation across a wide range of sectors – banking, insurance, manufacturing, retail, automotive, healthcare and government.
The influence and benefits of AI and Machine Learning
Several industries already use AI for various applications, getting better and smarter day by day. AI and machine learning benefit organizations by establishing predictive analytics and machine learning capabilities across the entire customer life cycle, by improving data completeness and consistency across back-end systems and by ensuring data quality and regulatory compliance through data governance. All these advantage features lead to reduced costs and boosted efficiency.
Advantages of AI in Banking Sector
According to Forrester report, the customer loyalty is crucial for financial services companies to sustain business growth. Sixty percent of leaders in financial services industry expect to use big data-driven AI to maximize customer value, so that they can improve the potential to upsell and cross-sell to their existing customers. On the other hand, machine learning helps to detect credit card fraud in real time by identifying unusual patterns in individuals’ transactions.
For the last few years, the banking sector has become one of the main adopters of Artificial Intelligence. Most banks and financial institutions implement AI to add more efficiency to their back-office and mitigate security risks. Thanks to AI the banks can offer better customer support by adding virtual assistants to their instant website chatbots, voice response systems, and mobile applications.
Comprehensive digital support is of a great importance for the banks to meet customers’ expectations, so with Artificial Intelligence, they achieve greater precision and accuracy. AI enhances the satisfaction level of the customers by providing abilities for bills payment, cards management, and other support. AI can also detect fraud and improves financial security with advanced fraud prevention tactics. Artificial Intelligence works as a real-time scam solution which subsequently builds more secure environment for the business and the customers.
One of the main advantages of AI is its ability to complete tasks through automation, resulting in better productivity. Based on a machine learning algorithm, AI can quickly consume and process a massive amount of data which brings efficiency to financial services and provides scope for personalized offerings to consumers.
Taking into consideration the above mentioned AI capabilities, all kinds of enterprises should consider incorporating AI into their business models. It’s not necessary to be a large company to take advantage of AI in order to provide better service to your customers – AI can help small and mid-sized businesses, as well. All of them should be involved in the digital transformation and to establish new structures, new technologies and most of all – a new mindset in relation to the customer.