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With AI, financial institutions are changing how they measure customer satisfaction and efficiency. Bankers are using AI not only for document summarization and marketing needs, but to manage more complex tasks such as evaluating loan applications, conducting research, and helping prevent fraud.”
Mitigate risk and fraud detection
It is also quickly becoming a critical tool for risk management. Because they can process large amounts of data in real time, AI-powered systems can detect subtle patterns and anomalies that could indicate emerging cybersecurity threats.
“Investment professionals leverage AI to gain quicker insights into markets, better mitigate risks, and protect customers’ assets. However, it is crucial that the data used is both reliable and compliant with regulatory requirements,” Kogod Professor Octavian Ionici says.
In fraud detection, AI adds a critical layer of security while adhering to security standards. AI-enabled platforms can continuously analyze customers’ transactions, flagging suspicious activity the moment it occurs. Commonly used software programs include:
- Feedzai
- FICO Falcon
- SAS Fraud Management
- Linkurious
These tools have proven highly effective: After implementing AI for payment validation, JPMorgan Chase saw a 15 to 20 percent reduction in account validation rejections. This improvement led to significant cost savings.
Ultimately, AI's capacity to learn and adapt makes it enduringly powerful. As fraud tactics evolve, so do AI systems, helping fortify companies’ security. For financial institutions, this means fewer operational disruptions.
As financial institutions worldwide continue to adopt and implement AI, their operations, service offerings, and security are rapidly evolving. Artificial intelligence is transforming these companies into more effective and resilient organizations and highly trusted partners to clients.
Ready to harness AI in your own financial career?
