Modern AI is already leaving its mark in many different domains, including banking and payments.
Thats when machine learning started.
There wasnt much momentum on the consumer side, says Jochem Wubs, data scientist at ABN AMRO.
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On the other hand, AI-powered consumer technologies are making payments easier and frictionless.
That is something that AI is going to help us with, Wubs says.
Here are some of the ways that AI is changing the way we store and exchange money.
These chatbots serve as assistants to the consumer and replace the often-tedious experience of using user interfaces in apps.
A successful example is Erica, Bank of Americas digital assistant, whichlaunched last year.
BoAs customers can interact with Erica as if they were talking to a banking assistant.
Every bank is looking into changing interactions with customers.
One of the interesting uses of voice-enabled assistants is purchasing items.
Amazon, which is ahead of the competition, already supports shopping for millions of items.
Shopping with voice is as easy as telling Alexa to order dog food or paper towels.
Earlier this year, online florist 1-800-Flowers.com launched asmart ordering featureon Samsungs Bixby voice-powered digital assistant.
Starbucks is another brand that made an aggressive push into voice-enabled ordering.
Earlier, Starbucks added integration with SYNC3, Fords Alexa-enabled technology.
This new feature allows drivers to ask Alexa to start their Starbucks order while on the road.
While voice purchase is an exciting and convenient feature of artificial intelligence,it does have its limits.
Amazon was the first company to introduce the idea of cashier-less brick-and-mortar shopping with itsAmazon Go retail stores.
Amazon announced Go in 2016, with plans to open to the public in 2017.
But theofficial launch was postponedto 2018 because of the problems the company ran into during its pilot.
Amazon plans to open3,000 cashier-less stores by 2021.
So far there are only 10.
Nonetheless, Amazons initiative has spurred similar efforts by many other large and small companies.
Convenience giant 7-Eleven ispiloting a cashier-less payment technologyin Dallas.
Sams Clubdebuted a beta cashier-less storein late 2018.
This system works well for people whose credit and banking history is well recorded.
But it excludes the hundreds of millions of people who are underbanked and arent in the digital financial system.
Well-established firms have also set their sights on AI to up their game.
New AI-based fraud mitigation technologies take many more data points into account.
The system has helped MasterCardreduce false declines by 50 percent.
The possibilities are amazing.
But finding the correct applications within the world of banking can be quite challenging.
Where will AI take the financial industry?
Wubs believes the effort should lead to a seamless experience for the end users.
Technological developments in the banking and finance sector are advancing at an accelerating pace.
Were in a transition in the way of thinking about money.
Its interesting to see how the industry adjusts to that.
