Artificial intelligence is the new kid on the block. It has been a staple of science fiction for a while now, with movies and novels like Terminator and The Terminator Trilogy captivating audiences with their visions of how artificial intelligence would impact our lives. But AI is closer than you think. AI is being used by major tech companies, startups, financial institutions, and governments today to drive innovation in countless industries, from healthcare to transportation to retail; the list continues. Artificial Intelligence can change your life in ways you never thought possible — so if you don’t know what it is, now is the time to start researching it! But before we get into that, let’s first take a quick refresher about what artificial intelligence is.
What is Artificial Intelligence?
Artificial Intelligence, or AI for short, is the process of creating computer systems that can perform tasks that humans can do, such as learning and problem-solving. There is no strict line between when AI begins and ends. AI has been around for a long time, with scientists creating the first primitive AI systems in the 1950s and 1960s. This is why AI isn’t a new “technology” but a specific approach to creating computers that can perform tasks humans can.
AI today is at a very early stage. It is not a replacement for humans at the workplace but more of a tool that can help humans to do their jobs better — like an assistant that helps a doctor to prioritize her tasks. AI can also help with decision-making in both business and everyday life. Some companies use AI to predict when customers will need a service, such as maintenance or repairs, and schedule these tasks accordingly to make the customer’s life easier. This is one of the main reasons why businesses are beginning to integrate AI.
Benefits of Artificial intelligence in Finance
AI will empower the financial industry to become more proactive in the face of changing customer behavior. We have already seen significant disruption in the banking and insurance sectors due to digital disruption. It’s only a matter of time before AI drives even more change. One of the most interesting uses of AI in finance is in credit decision-making. Most financial institutions today rely on manual processes to make credit decisions, including determining customers’ creditworthiness. With the right AI solution, the decision-making process can be automated, eliminating the manual tasks currently performed by humans and freeing up resources. Credit AI can also provide lenders with more granular insight into customers’ financial health, allowing them to offer more personalized services.
How to Train an AI for Finance
Determining the best model for financial decision-making is not easy. To train an AI model, data scientists pick a certain set of variables that predict certain outcomes. Then, they “feed” the model the data used to create it. The AI “learns” from the data and eventually can make better predictions. You can think of it as a machine learning algorithm constantly improving itself through “training.”
The key is to pick a set of variables that predict outcomes. For example, let’s say you pick credit score as your model. The AI will pick up on variables that help determine your credit score. But what if you want to pick a different outcome, such as the probability of someone repaying their loans? In that case, you need to pick variables that are less likely to affect your desired outcome. One way to do this is to choose variables that don’t reflect your financial health. For example, what if weight is not an important factor in your credit score?
Best Use of Artificial intelligence in Finance
There are a lot of exciting uses for AI in financial services, but the promise of eradicating discrimination in lending and credit decisions is the most appealing. This is why many startups and financial institutions invest heavily in this area. In theory, AI-powered credit scoring models remove the human bias that can lead to unfair outcomes, like denying someone a loan because of their race, sex, or other factors that have nothing to do with their creditworthiness. Credit scoring is a notoriously difficult area to get right, and with AI powered by data science, it becomes more accessible. If a financial institution can use AI to make prediction models more accurate and accessible, it can offer more personalized, accessible services to customers.
Benefits of Artificial intelligence in Healthcare
The healthcare industry is one of the first to embrace AI, and there are many reasons for that. The medical field is a highly regulated sector where the slightest deviation can cause huge patient trouble. This is why AI-powered decision-making is so appealing in healthcare. Let’s say you are a patient undergoing cancer treatment. You need to take certain drugs that might have detrimental side effects.
You might not know about these side effects until you are under the pressure of your treatment. In this case, AI can analyze your health and the side effects of certain drugs. You can even block certain drugs if you know their severe side effects. AI has the potential to help healthcare providers and patients navigate the health system more efficiently, with less stress and better outcomes. AI has the potential to help reduce healthcare costs by automating decision-making. For example, an AI system can help determine the best course of treatment based on patient data and doctors’ recommendations.
How to Build an AI for Healthcare
Again, the goal is to pick variables that predict outcomes rather than reflect someone’s financial health. From there, you need to feed the model your data. This can be done in a few ways — through a cloud-based system with which you share your data, through a public data source such as healthcare records, or by using an API. An important thing to remember is that you need to pick a model that matches your organization’s business needs. This means you need to consider the size of your organization. The kind of data you collect, and what kind of outcomes you want to achieve with your AI. Once you have picked the model and fed it with your data, you need to train it. This is when the model actually “learns” from your data. You can do this iteratively to tune the model until you get a happy result.
Artificial intelligence is the new kid on the block. It has been a staple of science fiction for a while now, with movies and novels like Terminator and The Terminator Trilogy captivating audiences with their visions of how artificial intelligence would impact our lives. But AI is closer than you think-AI is being used by major tech companies, startups, financial institutions, and governments today to drive innovation in countless industries, from healthcare to transportation to retail; the list goes on and on. AI can change your life in ways you never thought possible — so if you don’t know what it is, now is the time to start researching it!