Information Technology age arrived in the nineties, we started to adopt technology and then we never looked back. The trends within technology age might have changed over the last couple of decades but the adoption rate has been huge and applications areas are in every sphere of life. The similar trend was seen in many other technology areas in the recent years but another significant area is Fintech which has become a way of life for new technologies in the financial services enterprises in the last few years now. We are also seeing an increasing trend is that enterprises have starting to adopt going Digital in all aspects of the business.
The Big change which is impacting the way existing technology is being disrupted are the Artificial Intelligence (AI) and Machine Learning (ML) solutions. The Industry is impacting the business and has already grown in the size already. Gartner Inc. says Global Artificial Intelligence Business Value was about $1.2 trillion in 2018, an increase of 70 percent from 2017. The firm further projects that AI-derived business value will reach $3.9 trillion by 2022.
AI & ML Concepts
AI is the machine’s ability to process and interpret data points by learning from such data and to use those learnings to automatically start doing those tasks in an intelligent manner on its own.
Machine learning is sometimes used interchangeably with AI but is not synonymous but ML is a sub-set of AI and is the essentially means the use of statistical models that computer systems use to effectively perform a specific task without using explicit instructions relying on patterns and inference instead.
AI uses various technologies and machine learning is the most prominent one. Machine learning focuses on predictive analytics by making hypothesis, testing and then learning independently. Machine learning can use the given data and its patterns to makes assumptions, test or change the model without the intervention of a person. Thus it can predict the next likely action at a customer or transaction level with a higher accuracy and much faster speed.
The acceptance of AI & ML has already started to happen and it is becoming the key to solve business problems making it the way of life. The Enterprise technology and innovation teams are already developing new use cases and innovative products & solutions based on that. Most of the Industry experts believe acceptance and application of AI will increase significantly in the coming years as it has already delivered and solved many business problems.
Application Areas
The application areas and adoption of AI and ML have suddenly increased in the last one year or two. Typical examples of AI application where it is being used are Gaming, Search Engines, Chatbots, Image recognition, Analytics of any kinds – Data, web, Text etc, Self-driven cars, Medical problem solving, Drones etc.
The Industries where the application is quite wide are financial services, consumer product goods, telecom, healthcare, automotive, education, consumer electronics & multimedia and of late in the Sports arena.
Analytics is gaining a lot of steam given the AI application. Machine learning automates analytical model building. Predictive analytics using Machine Learning on structured or unstructured data can solve problems & identify opportunities like appropriate customer targeting, sales force optimization, credit risk models, dejargonising text related problems etc.
Other applications like the AI chatbots and digital voice assistants will be impacting finance and retail in a big way. The Big tech companies’ APIs for voice-based conversational AI is driving businesses to test new products and services.
Is AI a threat to replace the jobs and human?
The same threat was there when initially technology was first adopted or for that computers were introduced. AI is creating not only huge job opportunities but news spheres of work which human intelligence has either not been able to do itself or without proper resource optimization.
AI will likely create more jobs than it eliminates. Gartner predicts that in 2020, AI may create positive jobs 2.3 million jobs while only eliminating 1.8 million jobs.
Any of the past revolutions have in fact brought increased productivity and resulted in new job creation. We all know that the nature of work has constantly evolved over time. Machines are better than humans at processing numbers, memorizing, predicting, and executing precise moves. AI cannot replace humans when creativity, direction, perception and thinking are required.
Thus adoption of AI and ML is more inevitable and will create big and new business opportunities with super-efficient and fast way of solving many problems.
About the Author
Gurpreet Singh is the Co-founder of G-Square Solutions – an AI drive data analytics & BI company catering to clients in India and overseas. He is a PGDBA, CFA, and CFPCM by qualifications. Coming with an experience of more than two decades in the financial services industry, Gurpreet looks after the Sales & Marketing, Strategy, HR, Finance functions at G-Square. His domain areas include Wealth Management, Asset Management, Banking, Capital Markets and Consulting. Apart from all this, he is an avid sportsperson and loves networking with people.
AI & ML Driving the Technology Future
