The implications of artificial intelligence in finance

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AI is particularly helpful in corporate finance as it can better predict and assess loan risks. theSun theSundaily AI ArtificialIntelligence Finance loan news

A response by ChatGPT, an AI chatbot developed by OpenAI, is seen on its website in this illustration picture taken February 9, 2023. REUTERSPIXdemocratisation of artificial intelligence like ChatGPT will lead to a proliferation of new startups, services and products that prospers our economy not just from a consumer perspective, but also for founders, creators and prosumers.

Financial institutions are using AI to derive more accurate and granular data insights to analyse large amounts of financial data which include market trends, customer behaviours and predictions of market conditions. As AI continues to be improved, it can now understand and respond to natural language inputs, making it more effective at handling customer inquiries and providing financial advice.

However, there are certain hurdles that we must cross if we are to consider the full implementation of AI in financial institutions. Another point to note is AI’s ability to replicate what seems like authentic human speech speaks to an innate aspect of the human experience, inciting empathy automatically.

 

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