It was only a few years ago artificial intelligence was something you would expect to see in a Hollywood blockbuster. The future has caught up with us faster than we thought and we’re now stuck in the middle of a revolution that shows no signs of slowing down.
Some people are afraid of machine learning because they’re scared of how powerful it actually is. Others like those in the financial industry see huge opportunities at their fingertips. Maybe we should look at what will become mainstream quicker than you think.
Managing Lots of Portfolios
SAP talks about whether or not you can trust machines to make big decisions, but there are things in place to guarantee they stay within certain parameters. Nothing could be more important when looking at a startup like Wealthfront.
It looks after billions of dollars’ worth of money and is responsible for protecting the portfolios of countless people. It learns to manage everything depending on various factors, which eliminates the need for humans and high fees.
Being Able To Detect Fraud
As the years progress it feels like those committing frauds are coming up with ways to beat humans. Perhaps the bad guys are more intelligent than those working for banks. It’s also tough because banks can’t become too cautious either.
People will have a large amount of money saved away, so losing it could destroy many lives. Machines will learn when a fraudulent act is taking place and flag it up, plus they’re also likely to make fewer mistakes that disgruntle customers.
When It’s Safe to Lend Money
Even small financial lenders now prefer guarantor loans unless you’re prepared to pay an extortionate amount of interest. After all, nobody really knows if they’ll get their money back and it’s hard to weigh up the risks.
Humans will always make more mistakes than machines if all things are equal, but artificial intelligence will change everything. When a machine can learn from trends based of many data points it will know who it’s safe to lend money to.
Dealing with Insurance Underwriting
You can’t give everyone a perfect quote for certain kinds of insurance because there are too many things to take into consideration. Companies want to remain competitive while refraining from leaving themselves open to loses.
A computer will be able to take lots of data into account before giving out a quote. Not only will it keep up with new data in industries like health and real estate, but it will also learn from its past results.
Using Algorithms to Trade Stocks
When you look at the future SAP envisions when it comes to machine learning you know it’s going to be massive. Can you imagine anything right now bigger than being able to beat the stock market and become rich?
Lots of people have been using software in their attempt to beat the stock market for years, yet nobody has found the winning formula. Maybe there is no exact formula and learning as you go along is the way to do it.
A Much Better Financial Future
It did look like baby boomers were the lucky ones and everyone born after them were doomed to financial hardship. Young people today are definitely suffering when it comes to financial matters, but maybe machine learning is going to turn everything around soon.