Uses of AI, Machine Learning & NLP in finance & insurance
Considered one of the more sought after Applications of AI in finance, it is suggested that the use of AI for Fraud Detection could detect billions of dollars’ worth of fraudulent transaction. Whilst AI is already somewhat prevalent in the financial industry, it is expected that by the end of 2021, the amount spent on applying AI in finance with specific focus on Fraud Detection is set to triple.
The number of AI vendor products offerings which cover risk management in the financial sector is just under 15% and rising, with many now offering increasingly well-targeted modification to existing validation framework.
Detecting Subtle Changes
With finance often comes swathes of text and important information in written form, which is where NLP can be extremely useful. Measuring Textual change and comparing Documents is a painstaking task for humans , but a quick and easy process, classifying potential Monitory, risk and market changes in finance.
Machine Learning multi-layered neural networks, used to imitate human brain mechanisms, can be Deployed in an investment bank’s securities division, in both their equity trading desks and fixed income clearing corporation functions, while also greatly enhancing the performance and Accuracy in the core investment banking divisions that include capital markets, corporate and institutional advisory products and services, not to mention merchant banking.