Machine learning is a technology that helps to improve the services provided by systems, web, and smartphones. The terms Machine Learning and Artificial intelligence seem to be connected sometimes but they are quite distinct in the area of computing Machine learning is itself a type of artificial intelligence that allows software applications to become more accurate in predicting outcomes without being explicitly programmed Artificial Intelligence (AI) allows replacing humans with machines. With computational power becoming cheaper, using machines to solve large-scale optimization problems became economically feasible. Whether financial institutions are looking for improved customer service, risk management, fraud prevention, investment prediction or cyber security, the scopes of machine learning and artificial intelligence are limitless.
In the modern era of the digital economy, technological advancements are no longer a luxury for the organizations, but a necessity to outsmart their competitors and business growth. With the technological advancements in the recent times, the impact of Machine Learning (ML) and Artificial Intelligence (AI) are very critical than ever before.
While Machine Learning became the buzz word very recently, the term artificial intelligence (AI) has been around for 60 years. At present, AI has become an integral part of how we bank, invest, and get insured. Some financial institutions have been investing in AI for years. Other firms are now beginning to catch up thanks to advances in big data, open-source software, and cloud computing, and faster processing speeds.
The greatest potential for AI in marketing is around the opportunity to deliver personalization and relevance at scale. As consumers engage with their bank and more transaction and behavioral insight are collected, the consumer expects interactions with their bank to be more contextual and personalized.
The penalty for not delivering on this expectation for relevance and consistency of communication and engagement is getting greater every day. If you don't use the insight collected effectively, you will lose the customer. Machine Learning and artificial intelligence is most important in new era and in financial market.