In recent years, the term “Artificial Intelligence” has become a broad concept in everyday conversation, as AI continues to gain significant traction in businesses across the public and private sectors.
For companies, higher productivity, lower costs, and efficiency improvements are clear examples of the intervention of this new technology easyMarkets Due to the continuous innovation in technology, AI will continue to penetrate almost every business sector, and as such, AI is expected to drive the adoption of other emerging technologies such as the Internet of Things (IoT), robotics, and big data.
What is artificial intelligence?
Artificial intelligence is defined as a machine-based system that can make predictions, recommendations, and/or decisions affecting real or virtual environments. In terms of technology, the artificial intelligence market can be categorized into four types:
- machine learning
- computer fantasies
- natural language processing
- context-aware computing
The rapid expansion of artificial intelligence has been largely attributed to the maturity of machine learning modeling technology referred to as “neural networks,” as well as the increasing availability of large data sets and advances in computing power capabilities.
The expanding economic landscape is supporting the adoption of AI as a general-purpose technology, by providing more accurate and cost-effective forecasts, recommendations, and decisions that allow the technology to enhance corporate productivity and address complex business challenges.
What role does artificial intelligence play in our lives?
Over the past few years, artificial intelligence has become deeply integrated into people's daily lives, and based on the final industry, the global artificial intelligence market can be categorized into:
- Banking, Financial Services and Insurance (BFSI)
- retail
- Manufacturing
- Marketing
- health care
- the cars
- Display Protection
- Communication and information technology
- Agriculture
- HR
- law and much more
Experts note that the banking and insurance sector (BFSI) accounts for the highest market share in the use of AI, primarily due to technological innovation, increasing penetration of digital banking services among consumers, and increasing concerns about the prevention and management of financial crime and cybersecurity risks.
How does artificial intelligence work in financial markets?
Artificial intelligence is a branch of computer science that deals with the creation of intelligent machines that act and act like humans. It is based on the idea that the human brain can be simulated by a machine and that, if enough data is available, a machine can learn to think and act like a human.
We can apply artificial intelligence to financial markets and predict future trends, for example: a machine can be trained to recognize patterns in stock movements and then use this knowledge to make predictions about future stock prices.
Read also: How to use artificial intelligence ChatGPT Without creating an account and without the need for a phone number.
What are the benefits of using artificial intelligence in finance?
There are several benefits to using artificial intelligence in finance, including:
1. Accuracy is improved: AI can help provide more accurate predictions about the closing price, opening price and other financial data, and this leads to better decisions and more successful trades.
2. Improved customer service: AI can be used to improve customer service in financial institutions, for example: it can be used to assist customers with their account inquiries or give them technical market analysis.
3. Lower costs: AI can help reduce costs associated with running a financial institution, for example: it can be used to automate processes or improve operational efficiency.
In general, AI can be very beneficial to those who work in the field of finance.
How can artificial intelligence be used in finance?
There are many ways in which artificial intelligence can be used in finance, it can be used in: developing trading strategies, identifying patterns in financial data, predicting future market movements, and automating financial tasks.
Two of the most applied fields in finance are:-
Machine Learning: It enables a computer to learn data without programming it directly. Machine learning algorithms have been used in finance for fraud detection, risk management, and algorithmic trading.
Natural Language Processing (NLP): A type of artificial intelligence that enables computers to understand human language, NLP is used in finance for tasks such as sentiment analysis, text classification, and entity recognition.
