One of major technological inventions that changed the functioning of the world forever is Artificial Intelligence or AI. AI is taking the world by surprise through its abilities to learn, its amazing intellectual capacity and its ability to get better with time. It has become such an integral part of the world today that it is hard to imagine life without AIs interference. AI is definitely beyond a simple algorithm or command.
Artificial Intelligence is inclusive of speech recognition, understanding natural language processing, fraud detection, autonomously operating cars,military simulations, and learning and predicting trends like stock-market trading.
For those who are new to AI, here’s some basic yet interesting information you would not want to miss. AI is mainly categorized into four different types- reactive machines, a theory of mind, self-awareness, and limited memory. The usage of AI is not limited, but is spread across industries like finance, education, gaming,transportation, healthcare, and many more.
How the Banking and Insurance Sectors Flourish with AI
AI is becoming so popular that all fields around the world want to make the best use of it. Banking and insurance sectors were the first among many industries that explored the advantages of AI. The banking sector benefited greatly with personalized services for individuals, intelligent chat bots or even having AI cameras at self-service checkouts and ATMs. Insurance frauds can now be easily checked by the facial recognition and emotion recognition technologies.
The Flip Side of AI
While these AI tools help insurance agencies for a close-to-accurate risk assessment and also provide better customer service, they are not free from their share of disadvantages. The sophisticated AI tools, at some point, become a threat to an agent’s employment by considerably reducing the requirement for human resources. Insurance agents are under a constant threat of being taken over completely by AI tools.
AI and Machine Learning have also penetrated the lives of people in a way that no one could predict before their advent.
Better Business Provisions
If we take a closer look at AI in relation to the insurance sector, we will be surprised as to what all is possible in this age and time. It is the gift of AI that the living patterns and financial stability patterns of customers can be easily predicted by analyzing their economic and social backgrounds. The result of these advantages has given an opportunity to agents to categorize their customers accordingly. For instance, customers, whose financial patterns are identified to be safe, are given low premium offers. The fraud alerts and the ability to analyze data in the form of photos and videos has proved to be extremely beneficial and enhancing to the insurance businesses. The benefit in terms of cost estimation and claim settlement cannot be ignored.
Moving on to the banking sector and the benefit it reaps from AI, we can observe changes that have never been seen earlier. The working processes in banks have been greatly simplified by the usage of conversational banking (front end), the anti-fraud (mid-section), and the underwriting (back end).
From A Customer Perspective
The process of interaction with customers has also undergone a notable change with the penetration of AI into this field. Tools like chat bots have not only made the process fast and easy, but have ensured a 24/7 uninterrupted service availability to the customers. This has saved tremendous amount of time, which was earlier not possible. It has now become easy to identify fraud related to credit cards and money laundering.
AI’s Risk Reduction Ability
AI has a major role to play in the risk mitigation process. While banks use sensitive information and analyze the same, it becomes immensely important for them to make best use of AI tools to keep those details private and confidential. The information regarding the latest transactions allows banks to assess the risk before loan sanction and disbursement. It is only because of the AI tools that a high-level security can be guaranteed. The major concern at the moment is – will AI change human interactions drastically and forever? This doesn’t seem very likely. What should be expected now is a hand in hand cooperation between humans and their mechanical counterparts.