The software performs tasks that normally require human intelligence such as solving a problem, recognizing speech, an image, or an object, learning new things, making decisions, and more.

The introduction of Artificial Intelligence (AI) has helped many industries shorten the required time to solve problems and make decisions with high precision, practically eliminating errors. This has led to substantial cost reduction and higher customer satisfaction.

The domain of Fintech has greatly benefited from AI and still has a lot to embrace in the future. AI has practically revolutionized Fintech by helping Fintech companies become way more efficient. AI has enabled them process information, solve problems and make decisions through human-like algorithms at speeds that are beyond the capacity of human beings with extreme precision. 

In the past, it was more about automation, speed and accuracy of well-defined transactions; now intelligence has become a major part of the equation. A Fintech company wants to make sure all client-related decisions are substantiated by a wealth of historical information, accurately validated, and quickly executed. AI helps Fintech companies understand their clients’ needs better in order to serve them more efficiently.

In that sense, AI relies heavily on machine learning algorithms combined with big data analytics to solve problems, make decisions, and conduct predictive analysis. Fintech companies, using a smaller workforce, can now offer better services at lower costs, thus improving both company and client experiences.  AI is estimated to reduce operational cost by 25% in the next decade!

The contributions of AI to wealth management involve customer interaction, middle office, and back-office operations. On the customer interaction level, AI helps in customer understanding, assessment and onboarding, conducting Anti-Money Laundering (AML) and Know Your Customer (KYC), and providing customer-best-fit customized product offerings.  AI can easily provide real-time advisory and predictive analysis allowing the client to make better decisions.  Traditional wealth management firms can no longer compete against companies serving clients more efficiently through the adoption of AI and Machine Learning (ML) technologies.  Such companies provide clients with investment advice, risk minimization tactics, optimized service levels, and more. On the middle-office and Back-office levels, AI helps improve risk management by minimizing potential misconduct and ensuring compliance with regulations.  AI assists in producing better notifications and alarms, generating smart on-demand reporting for the client, uncovering hidden correlations, and identifying emerging patterns. 

AI is the future of automation in the Fintech industry. It will help improve performance and reduce risks.  In 2025, it is expected to have a total investment of USD60 Billion in AI in the Fintech industry. This will guaranty substantial advancement in AI technologies, placing it at the core of Fintech solutions and services.