How Artificial Intelligence Is Disrupting Finance
Key Highlights Artificial Intelligence (AI) Is Exploding The widespread adoption of AI across industries is predicted to drive global revenues of $12.5 billion in 2017 and $47 billion in 2020 with a CAGR of 55.1% from 2016 to 2020. The industries that will invest the most in these technologies are banking and retail, followed by healthcare and manufacturing. Economists designate general purpose technologies (GPT) as those important enough to spur protracted economic growth and societal advancements. For example, electricity is a GPT. A recent Harvard Business Review article designates AI as the most important GPT of our era. Risk Management PayPal has been able to boost security by leveraging deep learning technology. PayPal’s fraud is relatively low at 0.32% of revenue, a figure far better than the 1.32% average that merchants see. While a linear model can consume 20-30 variables, deep-learning technology can command thousands of data points. AI Trading For years, investment management companies have relied on computers to make trades. Around 9% of all funds, managing $197 billion, rely on large statistical models built by data scientists. However, these models are often static, require human intervention, and don’t perform as well when the market changes. Therefore, funds are…
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How Artificial Intelligence Is Disrupting Finance
