Artificial Intelligence (AI) is revolutionizing the digital landscape worldwide. Although the technology is several years old, recent advances have managed to put it on everyone’s lips.
There are various types of Artificial Intelligence, but the so-called generative AI is the most talked about. Using such software development services, existing data such as text, images, sound or video can be used to create new and original content.
Generative AI has a wide range of applications in different industries , such as entertainment, education, healthcare or the arts. But it can also be very useful in banking and finance.
In this article, we will tell you about some of the roles, applications and benefits that Generative AI can bring to Banking and finance.
What is generative AI and how does it work?
It is an artificial intelligence that uses complex mathematical algorithms that learn from existing data and use it to create new data. These models are called generative anti-networks or GANs, and consist of two competing artificial neural networks: a generative network (which generates content) and a discriminatory network (which recognizes the difference between generative and real content). between and provides feedback correction ).
In this way, the two networks feed and train each other until the optimum is reached. The result is machine-made objects that look human-made.
Generative AI can be used to create digital art, create complex text, voices, enhance images and even generate synthetic data that can be trained or imitated by other AIs
What applications does generative AI have for the financial sector?
Generative AI in Banking and Finance can be applied in various ways , both at the level of contact with customers and in internal improvements:
- Customer service : one of the most obvious areas that has been applying the use of Generative AI for the longest time is customer service, in which chatbots and similar applications are usually used that allow customers to find a lot of information and solve various problems and questions without having to make a phone call or spend a lot of time exploring the page to answer your questions.
- Marketing and Sales : Generative AI in Banking allows you to generate creative content more quickly, segment customers faster and more efficiently, and personalize treatment with potential customers, maximizing conversions.
- Product and service development : This custom software development services allows banking and financial entities to design and offer products and services that are more tailored to customer needs. For example, generative AI can generate personalized offers for credit, insurance or investments, based on each customer’s profile, history and behavior. It can also generate customized financial solutions for specific companies like custom software development services or sectors, taking into account their characteristics and needs.
- Corporate tasks: With generative AI it is possible to analyze large amounts of financial data at high speed and with a high level of efficiency and accuracy. At the same time, this technology can be used to generate clear and concise reports that summarize the economic situation of a company, a client or a market. It is also possible to apply Generative AI in Banking to automate audits, simulate financial scenarios and make predictions about market behavior.
- Fraud and risk detection : For example, generative AI can generate fake transactions, fraudulent credit applications, or altered documents, and compare them with legitimate data to detect differences. It can also generate alerts or warnings in case any irregular or potentially dangerous activity is detected.
What are the challenges and risks of generative AI banking and finance?
Generative AI is a very promising technology, but it is facing a lot of skepticism from the general public and industry alike. Apart from the ethics of its use depending on the fields, there is controversy above all about its ability to produce accurate and unique data
It is important to remember that this is a technology that is still in development and therefore, products must be constantly monitored and verified by humans, to ensure that they meet the quality and reliability standards required by the industry on.
On the other hand, generative AI in banking and finance requires a lot of data to be efficient and deliver optimal results. The greater the volume of data and the higher the risk of breaching the confidentiality and security of consumers’ and companies’ personal financial information so data must be ensured to be treated with confidentiality and respect and in accordance with legal and ethical rules a about data protection meets
Finally, it is crucial to apply Generative AI in conjunction with a series of regulations that regulate its use since it can influence the real financial decisions of clients, employees and managers, which implies risk at many levels.
Generative AI in Banking and the financial sector can be a revolution that completely changes the way we interact with the sector. However, human supervision and the application of this technology with an ethical sense and responsibility are still necessary.
