Artificial intelligence thrives with data. The more data you have, the better your algorithms will be. However , just having a lot of data is not sufficient anymore. You also need high-quality data, or in the words of Peter Norvig, you need better data:
“We don’t possess better algorithms, we just have a lot more data. More information beats clever algorithm, but better data beats more information. ” – Peter Norvig – Director of Research, Google
Nowadays, most organisations collect vast troves of data, but especially the financial sector is well-suited for also collecting high-quality data. Simply because of regulations and because a lot of data in the financial sector is structured data. There is also an abundance of data within public markets or even other external sources that can become linked for additional insights. As it seems, banks and insurance companies can benefit a lot from AI, if implemented correctly, of course.
Financial Institutions Have to Innovate
Besides, more and more consumers require financial institutions to innovate. They have become fatigued with overbearing fees to their manage capital and provide products such as credit. The below graph by State of AI clearly shows the difference in costs between traditionally managed wealth and automated management of wealth. As a…
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