Artificial intelligence (AI) is set to play an ever-increasing role in financial services and will "fundamentally reshape" the industry for firms, consumers, and markets says the CEO and founder of one of the world's largest independent financial advisory, asset management and fintech organisations.
deVere Group's Nigel Green's comments follow Microsoft's announcement that its suite of productivity tools is being enhanced by artificial intelligence software and pushes ahead in a race against tech giants such as Google, Baidu and Adobe to commercialise AI technology.
It also comes in the week that Chancellor Jeremy Hunt announced that the UK would launch an 'AI sandbox' to encourage groundbreaking research into artificial intelligence. The Treasury confirmed millions of pounds in prize money up for grabs over the next decade.
Jeremy Hunt used his first budget to outline the early stages of a new quantum strategy, which forms part of the government's plans for Britain to become a "science and technology superpower."
Nigel Green says: "Despite the lack of familiarity for most people, AI is a technology that's transforming the way we do business, interact and, without exaggeration, how we live.
"It's a wide-ranging tech that enables people to rethink how we integrate information, analyse data, and use the resulting insights to enhance our decision-making. AI is already changing the world and raising important issues for society, the economy, and governance.
"Whilst there are also concerns about the ethical and social implications of AI, such as privacy and bias, it has the potential to bring about considerable positive changes, not least in areas including healthcare, education, business, and public services.
The deVere CEO believes that finance is one of the sectors that will become defined by AI in the coming years.
"It will fundamentally reshape the industry" for firms, consumers, and markets.
He notes: "One of the most obvious ways is that AI chatbots and virtual assistants can help financial institutions offer personalised customer service, 24/7, and respond to client queries in real time.
"It could also help financial institutions discover fraudulent activities by analysing large amounts of data in real-time and identifying unusual behaviour trends.
"As such, this will help financial institutions make better and faster decisions by analysing facts and figures and providing insights into potential opportunities or risks.
"We expect that algorithms can help financial institutions make more informed trading decisions by more accurately assessing market reports and, therefore, predicting future trends and patterns."
It's also hoped that AI will help finance companies adhere to "regulatory and reporting requirements by automating compliance processes" and identifying potential areas of non-compliance.
He concludes: "By pushing the boundaries, improving efficiency, reducing costs, and providing better services to their clients, I'm confident that AI will change the financial sector for the better in more ways than in most sectors.