Artificial intelligence (AI) is a branch of computer science. It involves developing computer programs to complete tasks which would otherwise require human intelligence. AI algorithms can tackle learning, perception, problem-solving, language-understanding and/or logical reasoning.
AI is used in many ways within the modern world. For example, AI algorithms are used in Google searches, Amazon’s recommendation engine and SatNav route finders. Most AI programs are not used to control robots.
3 Ways AI Will Change the Jobs Market in the future
Artificial intelligence is a technology that is rapidly altering the ways people do things. This technology has also changed the workforce and jobs market, and it will continue to do that in the future.
Here are three likely predictions:
1.Recruiters Will Have More Time to Find the Best Candidates
Recruiting for open positions is not a straightforward process, especially for the most in-demand roles that could attract dozens of applicants or more.
That’s why automation technology is an emerging trend human resources professionals will implement in 2019 even more than they are now. Without the help of such AI-driven tools, recruiters could devote approximately one-third of their workweeks to manually sourcing candidates.
2. The Productivity of Companies That Use These Technologies Will Go Up
When automation technology and AI get used simultaneously, there’s a strong likelihood that companies can anticipate getting more done and going through fewer periods of downtime. That’s because, unlike humans, machines do not require breaks.
When automated machinery has AI components, it could detect instances of failing parts before the machines shut down, letting operators respond proactively.
3. AI Will Make Looking for Work Less of a Hassle
Although some people feel excited by the idea of looking for new jobs, the activity can quickly become tiresome — especially as people waste their time coming across too many positions that aren’t suitable for them. Developers have recently begun offering AI technology to aid job seekers that looks for possibilities and encourages individuals to apply.
Eightfold is an AI-based platform featuring a chatbot that asks candidates about their backgrounds and then matches them with appropriate positions. Representatives from Eightfold say this process reduces the time to interview by 80 percent, as well as cuts down on hiring costs.
The time spent waiting to hear back about an application can be nerve-wracking. The AI technology in Eightfold and tools like it could result in less waiting, giving people the clarity they need to decide whether to continue searching or get ready for their interviews.
Benefits of Artificial intelligence in Finance
The rise of Artificial Intelligence is set to disrupt financial services on a massive scale and a host of banks are increasingly turning to AI powered technologies to improve existing processes and develop new innovations. Given that a recent PWC study found that AI has the potential to consist of $15.7tn of the world economy by 2030, it signals a huge opportunity for multiple industries, including financial services.
3 Applications of AI in Finance
1. Wealth and Asset Management
A key differentiator in the world of wealth management is the ability to understand which assets and securities will yield the best results and in this sense, AI has a huge role to play in giving wealth managers the competitive edge. In 2014, UBS pursued an ambitious plan to acquire AI firm Sqreem technologies in order to give their wealth advisors the ability to provide tailored advice to their wealthy clientele. Others have followed suit and in an effort to better predict market trends and make better performance calculations, organisations such as Blackstone, S&P Global and Euronext are adopting machine learning to improve forecasting and ultimately increase value for their clients.
2. Customer service
The fact is that a lot of the new Fintech upstarts that are disrupting the industry have built a solid reputation of excellent customer service by utilising emergent AI technologies such as NLP to provide instant service. If you have ever used Revolut’s banking app then their support service utilises smart chat to direct your enquiry to the relevant support staff. So no need to go through multiple hoops to speak to the right person. Taking it a step further, machines can now fully address customer queries where relevant. Take for example Royal Bank of Scotland, who as early as 2016, installed an AI assistant Called Luvo to help users deal with user queries and when it’s not able to the system hands over to an actual human. The rise of these so-called robo-advisors is simply going to re-define the customer experience and give incumbents a tool to bring up their A game.
3. Credit Scoring
New Fintech companies such as Upstarts is using AI to gather alternate data to prove creditworthiness. This alternate data may take multiple forms that ultimately analyse a user’s digital footprint to gather data to help make lending decisions. In the case of Upstart, the company analyses your employment history, educational background and other sources of data such as social media to make credit decisions. Upstart is not alone with a host of companies, especially those targeting emerging markets, such as Cashe in Mumbai, where billions remained unbanked to make credit decisions.
It’s a brave new word and AI-powered algorithms are already disrupting the lending industry to enable millions of underserved customers to access financing options previously out of reach.
AI can be applied to many more problems and markets. In fact, it should be thought of as a fundamentally new approach to every problem. Those decisions will be made by humans who want to change and improve the world, and who now can scale their minds to address ever-expanding frontiers.
AI, machine learning and natural language processing will help us make sense of the seeming chaos around us. The more sophisticated the tool, the more sophisticated our understanding of the world will be.
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