Autonomous Finance – Where AI and Finance Meet
AI is a powerful technology with applications across several industries including financial services. When AI is applied to financial services, we call it autonomous finance and it can be used in everything from credit scoring to algorithmic trading.
So what is autonomous finance, how is it used, and where is it going?
What is Autonomous Finance?
Autonomous finance is the use of technology and artificial intelligence (AI) to automate important financial decisions and processes.
With big data, advanced data analytics, and the computing prowess available to financial services, the decision-making process can include and use more information and make better decisions through the use of technology.
As it requires less manual effort, autonomous finance improves the customer experience by accurately predicting what customers both want and need, resulting in better customer retention and loyalty.
The power of autonomous finance also means that it’s way more efficient than manual effort, can deal with huge amounts of data in real-time, and provide powerful solutions using all the data financial service providers have at their disposal, which is often a lot.
How is Autonomous Finance Used?
So what does autonomous finance do and how is it used?
AI and machine learning have been used for a while in credit scoring. It allows for way more data points to be taken into account than a human analyst would be able to consider with better analytical methods to boot.
Autonomous finance also works well in fraud prevention. AI and machine learning algorithms can detect anomalies on greater scales and, therefore, discover fraud way more effectively than individual human analysts can.
Trade has also been improved by automated finance and algorithmic training uses AI, machine learning, and data science to make smarter and better decisions.
What Are the Current Trends in Autonomous Finance?
As one of the biggest things happening in financial services, with hundreds of billions of dollars expected to be spent on autonomous finance, it’s important to have an idea of where the field is going.
The technological research and consulting firm Gartner suspects that generative AI, autonomic systems, and privacy-enhancing computation are the biggest autonomous finance trends to look out for in 2022.