How AI Is Changing Fintech

Artificial intelligence, also known as AI, has taken the tech world by storm, allowing companies to cut costs, automate a variety of their processes, as well as boost their bottom line. AI-powered chatbots, specifically, are being used by companies big and small as virtual assistants, customer care representatives, marketing executives, and salespeople.

In addition to the above technological trend, investors across the world are taking a large amount of interest in financial technology (Fintech) companies. In fact, investment in Fintech organizations rose by approximately 10% to just over $23 billion in 2016 alone.

While China is leading the Fintech investment surge, the United States and Europe aren’t far behind and this is largely due to the decrease in popularity of more traditional financial institutions, such as banks and insurance firms, among others. These once-popular financial institutions have been largely disrupted by new technologies…and AI is one of them.

One of the key reasons various finance firms are implementing AI into their processes is to increase security. Normal security systems like anti-viruses are no longer keeping up and companies are looking for the next best thing: artificial intelligence. AI uses machine learning, which allows companies to fine-tune their systems to improve security.

Because AI helps by analyzing larger volumes of security data and is also able to scale to the size of a company as it grows, this technology can aid organizations in identifying:

In addition to keeping sensitive information safer, AI cuts processing times in half. As you well know, processing receipts and other financial documentation is extremely time-consuming; it requires the patience and perseverance of multiple resources and is one of those necessary tasks that’s often prone to human error.

AI allows you to process this information more accurately and quickly. Machine learning can recognize specific patterns and is able to improve with every task it undertakes. As a result, its ability to process information becomes quicker over time.

Because documentation and processing require a lot of brainpower, it’s natural that there’s more space for human error. While AI isn’t advanced enough to replace humans altogether, it can validate and double-check information for duplicate expenses, among other common mistakes.

Pixmettle, a silicon valley startup, is taking up this challenge head on.