How AI Is Shaping The Financial Landscape?
Artificial Intelligence (AI) is part of life these days. It’s penetrated daily living to the point that some might say it’s pervasive. Our smartphones, the daily equivalent of what used to be our diaries – due to their grip and integration into our personal lives – employ AI in most if not all of the applications that we use.
When we date, we use AI. When we travel, we use AI. When we conduct our financial affairs, we use AI. We’ve reached a point in human history where there’s no escaping it, and our reliance on is only likely to increase. AI’s role in the financial sector has been one of immense proliferation.
Thanks to AI, various facets of the financial sector that were reliant on human judgement and thus prone to human error, are fast being eradicated and replaced with automation.
The Power And Influence Of AI
Like anything that stands to impact our lives daily, there needs to be regulation, and the same applies to AI. It’s power and influence extends to how we conduct our work and practically our financial dealings.
We barely need to leave our homes these days, and that’s not just because of the backlash of 2020. We work from home, we earn from home, and if we even set foot inside a bank, it’s out of sheer necessity. However, as banks and other financial institutions elect to further rely on AI, it’s become quite apparent that a great degree of vigilance also needs to be employed.
For instance, people’s rights can easily be infringed upon. Big data is captured through various AI portals and in some cases, companies using AI to gather such data might be infringing upon the rights of users and/or clients. To further illustrate the point, back in 2016 a prominent insurer was forced to cease the use of social media in order to determine premiums for first-time vehicle owners because the social media company it outsourced the task to raised major concerns over the privacy of the individuals, which in turn also led to questions around biases.
Of course, the gathering of big data is also not some big nefarious scheme. Quite often your browsing interests are carefully selected in order to market appropriate content back to you. For instance, if you have an interest in the stock market and financial instruments, then topics around indices trading and stock trading are likely to appear in your browser or on the websites you peruse in the form of banner advertisements.
Rights V. Information
Due to the abundant access that companies, firms and financial institutions now have to information, there’s more at stake for the client/customer/user. The extent to which we are now entrenched in technology means that companies use the information that we submit to make key judgement calls, such as credit scoring.
The dilemma facing all users of the net is that we have the rights to deny such access, but it’s usually a convoluted affair, thus causing many users not to exercise such rights. And even if we did, what then are the ramifications?
Very often closing a social media account requires that one jump through a series of hoops, lit with fire. And then, if you do close such accounts, how will it affect the way a company might assess your credit score rating? In making way for AI and various other social media channels, we’ve traded in certain rights in exchange for others, and so far the muddy waters of this brave new world cannot give us the clout we so very much require.
While AI has in many ways made our lives better and easier, it’s also brought with it unforeseen circumstances. It might be time for the digital arena to start issue warning labels.