AI News, Report: Automation and Artificial Intelligence: How machines are ... artificial intelligence

Artificial Intelligence Market Forecasts

Artificial intelligence (AI) within the consumer, enterprise, government, and defense sectors is no longer considered a technology that is “nice to have.” Tractica believes the global market has entered a new era where AI is viewed as an essential technology to driving improvements in quality, efficiency, and speed.

Although the market is still nascent and significant work remains to be done before AI becomes a mainstream technology, end users and solutions providers must identify the technologies and use cases where they want to invest in AI.

Tractica has added use cases spread across multiple industries, including energy, manufacturing, retail, consumer, transportation, public sector, media and entertainment, telecommunications, and financial services.

The impact of artificial intelligence in the banking sector how AI is being used in 2020

Discussions, articles, and reports about the AI opportunity across the financial services industry continue to proliferate amid considerable hype around the technology, and for good reason: The aggregate potential cost savings for banks from AI applications is estimated at $447 billion by 2023, with the front and middle office accounting for $416 billion of that total, per Autonomous Next research seen by Business Insider Intelligence.

In fact, many banks are planning to deploy solutions enabled by AI: 75% of respondents at banks with over $100 billion in assets say they're currently implementing AI strategies, compared with 46% at banks with less than $100 billion in assets, per a UBS Evidence Lab report seen by Business Insider Intelligence.

The three main channels where banks can use artificial intelligence to save on costs are front office (conversational banking), middle office (anti-fraud) and back office (underwriting).

Automation and artificial intelligence could save banks more than $70 billion by 2025

By using technology to automate jobs or help employees at work, North American banks could save more than $70 billion by 2025, the study showed.

Across the entire financial services industry, which includes banking, insurance, and capital markets, savings could be between $87 billion and $140 billion in the same time frame.

More than half of tasks currently performed by loan officers, personal financial advisers, tellers, and customer service representatives could be either automated or augmented by technology by 2025, the study found.