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Friday, 28 January, 2022

State of AI in financial services – NVIDIA report analysis

AI is transforming the financial industry. Financial intuitions are harnessing the power of data and AI-enabled innovation to help accelerate revenues in banks, fintechs, insurance and financial services across the world.

Each year NVIDA produce a report on the state of play. Here are the key findings from this interesting report:

Key findings #1
AI is pervasive across financial sector. 78% of companies are utilizing machine learning, deep learning and high-performance computing.

This is an impressively high percentage. It is not surprising as AI is one of the best way of leveraging insights from the wealth of financial data. This figure is set to rise in future years as the returns as larger returns are realised.

Key findings #2
80% of fintechs have the enterprise AI capability but lack the scale of data needed to enable many deep learning use cases.

Most financial companies have the technical capability. Depending on what ML/AI method will determine the quality and size of data. The main thing is to look at all methods for trying to get the answers you need. Possibly one of the restrictions in the industry is that the information is heavily regulated and therefore cannot be share easily. Therefore, better problem framing and model development may be required.

Key findings #3
38% are gaining a competitive advantage from their AI investment

One of the greatest aspects of AI is that it can help create blue water between your and your competitors. When finding a niche area, AI can yield powerful results.

Key findings #4
27% are increasing revenues and reducing annual costs when using AI

One of the unsung heroes of AI is the ability to both increase income and decrease costs. This is why AI is transforming all industries including the financial institutions.

Key findings #5
The largest proportion of AI use case is in fraud detection (31% – risen by 310% on last year)

AI is a powerful weapon in combatting a yearly increase in Fraud. This is normally the domain of specially trained and astute staff. But, as fraud is becoming more and more complex, AI is a perfect tool for analysing huge amounts of data and spotting anomalies quickly and easily.

Key findings #6
Plans for future. What AI are they investing in – 30%+ will: Hire more AI staff, provide training, engage in 3rd party partners to accelerate adoption, spend more on infrastructure, identify additional usage case.

AI expertise is very important. Having a dedicated team behind your strategy can help bring so many benefits as well as develop future ideas.

Read the 2022 report here (details may be required)

In summary
This is a very encouraging report. There is no question that financial institutions are one of the main and first adopters of AI. The interesting part is that there is room for growth. As AI technology evolves, new opportunities will become available. If AI ready, the rewards are there to reap for future years.

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If you are a company in need of finding the right AI team or the right AI approach, please feel free to contact me. Whether you are start-up or multinational/government get in contact today and see how I can add value to your organisation.

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