Technology has greatly changed the way that we do just about everything. When it comes to finance, technology has been changing how we do things since the invention of the calculator. Think about it, 100 years ago, how we spent money, banked, invested, even kept track of our money was very different. Today, we’re seeing yet another evolution in the world of finance as the result of emerging technology. That technology is known as artificial intelligence, and it’s ingrained deeper in your financial life than you may think.
What Is Artificial Intelligence?
According to Merriam-Webster, artificial intelligence, commonly referred to as AI, is defined as:
1: a branch of computer science dealing with the simulation of intelligent behavior in computers
2: the capability of a machine to imitate intelligent human behavior
How Artificial Intelligence Is Changing The World Of Finance
As the internet created a revolutionary change in our financial lives, artificial intelligence has the ability to do the same. Perhaps more importantly, it is already starting to play a role in our financial lives. Here are some examples of what’s going on:
In the past, when you wanted financial information, anything you researched was written by a human being. However, these days artificial intelligence is being mixed into information technology. For example, a relatively new artificial intelligence that goes by Ted researches the market and writes investing articles about stocks.
Ted from iWatch Markets isn’t the only robo-journalist in the works either. In fact, Google has invested more than half a million dollars into a robo-journalism scheme in Britain. Not to mention, the Washington Post has a robo-journalist that had published more than 850 articles by September of 2017.
Budgeting has been a challenge for many since the idea came to fruition. Nonetheless, it is becoming easier by the day with the help of Artificial Intelligence. In fact, there are various artificial intelligence financial assistant apps on the market today that help you to keep your budget on track. One example of this is known as Olivia, which can respond to your text messages, manages your accounts, tracks your spending and provides personalized plans based on your financial habits.
Robo-advisors have been all the rage as of late. Through the use of artificial intelligence, these programs analyze the markets and make trades for consumers. The idea here is that based on technical factors, the artificial intelligence has a better chance of generating a profit as humans make mistakes that computers simply would not.
One of the most well-known robo-advisors on the market today is known as Betterment. The program allows users to adjust their allocation, managing risk by changing percentages of funds going into stocks and bonds. From there, the AI takes over, maintaining a portfolio that has a high probability of outperforming the S&P 500. Check out the full review of Betterment here!
The Sky Is The Limit
While artificial intelligence is already playing a role in our financial lifestyles, it is still a very young technology. Artificial intelligence as we know it today is younger than the internet was as we knew it when we heard a dial tone as we accessed the web. At the end of the day, as the technology continues to evolve, our financial lifestyles are likely to follow. Think of the future implications:
- An All Inclusive Finance AI – Could you imagine an artificial intelligence that would connect to your bank and investing accounts, automatically making moves across the board for you? An intelligence that can handle just about all facets of your financial life, taking away human error and giving consumers a better probability of building wealth? It could come one day.
- AI Banking Services – AI banking services are already being provided to high end customers of some of the world’s largest banks. However, as artificial intelligence evolves these services may soon be provided to the everyday consumer.
- Absolutely No Fraud – Could you imagine a world where credit card fraud simply didn’t exist. As artificial intelligence evolves, this may become possible. In fact, Intel has various programs in the works that are designed to fight against fraud through the use of AI.
Technology has a way of leading to evolutions in the way that we do just about everything. It led to the vehicle, which changed the way we travelled, the stove which changed the way we cook, and countless other inventions that have made our lives easier. Now, artificial intelligence seems to be the next wave of technology and it is quickly leading to an evolution in the world of finance. So, if you want to stay ahead of the curve, it’s time to dig in and see what AI can do for you!