Introduction
Artificial intelligence, machine learning and deep learning are doing something that once seemed unthinkable. They are transforming heavily regulated industries, such as the “financial services and trading industry” or the “healthcare and life sciences industry”.
What is interesting, however, is that “insiders” in these industries seem to react in very different ways to the arrival of these new and disruptive technologies.
The exponential growth of disruptive technologies that accelerate each other
The speed of technological development means that transformative change will come much sooner than expected.
Big data and the near-endless amounts of information undoubtedly transformed AI to unprecedented levels. Blockchain technology and smart contracts will merely continue the trend.
The enormous increase in computational power, the breakthrough of “Internet of Things” applications and the further development of smart machines will only accelerate AI’s development and global adoption.
The increasing acceleration of innovation will add to AI’s ability to adapt to new situations and solve problems that currently seem to be impossible.
The need for “humanity” in financial services as self-serving deceit
Bankers, financial services providers and their consultants often use the “personal” aspects (particularly, the understanding of human emotions) as the main argument against the wide adoption of AI, machine learning and deep learning in the industry.
Ironically, however, the emphasis on the meaning and the human aspects of financial services can come across as arrogant and self-serving. The characterization of finance as deceitful, infamous, and vulgar still rings true today — particularly in the wake of the 2008 financial crisis.
“Arrogant” bankers and financial professionals, engaging in a produced performance that is not authentic, makes me sceptical about their dismissal of AI and smart machines. The hierarchical organization and structure of banks appear to be an important reason for the “impersonal”, time-consuming and cumbersome interaction with bankers and their consultants.
Funding in new technologies reaches “record” levels
The flat hierarchy and “peer-to-peer” opportunities offered by innovative start-up companies in the financial industry give them a tremendous advantage over traditional banks.
Innovative artificial intelligent applications (that have the potential to reduce the need for trained professionals) will only facilitate “peer-to-peer transactions.
The fact that smart innovators continue to attract record amounts of money usually means something big is happening. This is just another reason why we cannot ignore artificial intelligence in the financial industry.
Artificial Intelligence and algorithms are Trending
Companies that are algorithmically based and embrace AI are the darlings of consumers and popular culture.
Siri (Apple), Google Assistant (Alphabet), Cortana (Microsoft) and Alexa (Amazon) are currently ready to assist you with more and more difficult tasks.
Artificial intelligence, machine learning, deep learning are just the beginning of a revolution that will transform everyday life and how we interact with technology.
Investors and consumers value the companies that embrace these new technologies and gradually bring them to the market. It is thus no surprise that Apple, Alphabet, Microsoft and Amazon have recently replaced the traditional financial institutions (and oil businesses) as the largest companies in the world, at least according to their market capitalization.
These companies view different types of Artificial Intelligence as the most important business opportunity for the future.
