Tech Time: Machine learning transforms instinct into knowledge

Machine learning is a technology you are likely hearing a lot about these days, for good reason. Artificial intelligence uses algorithms to process data, detect patterns and predict outcomes. Machine learning is a subset of AI that goes a step further by learning to make better predictions and recommendations as it processes more data. As such, it’s having an important impact on a number of fields, including financial services.

A recent survey found that 33 percent of senior financial services industry decision-makersglobally have already begun to deploy this emerging technology. Indeed, there are several use cases for artificial intelligence and machine learning applications in banking, from risk and compliance to underwriting and investment portfolio management.

While there is a lot of talk about the disruptive power of artificial intelligence, most of the AI solutions in the market today are making small, yet meaningful improvements to the way we do our jobs. As Harvard Business Review contributors Thomas H. Davenport and Rajeev Ronanki put it, “Highly ambitious moon shots are less likely to be successful than low-hanging fruit projects that enhance business processes.”

 

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