Artificial Intelligence (AI) has taken a major role in acting as the main driver of upcoming hi-tech future in the world. It is shifting the information age to a completely new digital domain where upgraded machines help to solve critical decisions and assist in diverse sectors of a country.
The banking and financial sector is very keen in investing in AI to protect their customers against the competitors in this market. Thus depending on the current scenario, Goldman Sachs, a leading American multinational investment bank, is betting on AI to dive growth in the economy. It has a fund of $72.5 million exclusively for the investment in Artificial Intelligence algorithms and data analytics.
There is a sudden surge in the cases against cyber-security, cyber-threats, phishing, spamming, hacking and many more unethical behaviours from dark web. It is due to the digital transformation in online banking through websites or mobile apps. Goldman Sachs deals with investment management, securities, asset management, prime brokerage and securities underwriting. This means banks need the best security possible against the online threats. Here comes AI to assist Goldman Sachs in the best possible way.
Why Goldman Sachs is betting on AI to dive growth?
1. The constant fear of cyber-attacks has been reduced with the help of filtering application of AI. Yes, there are possibilities of receiving fraud applications with unethical motives. AI cyber-security detects and blocks these applications while collecting real-time data from the users on a large scale.
2. AI-enabled Investment Trust has already become a successful test for Goldman Sachs in enabling the best investment options for the customers. This has improved customer engagement while running through various kinds of analyst reports and news reports. The investment trust runs on NLP (Natural Language Processing) to assist asset managers in identifying undervalued shares and probable opportunities for profits.
3. Partnership with an AI-based startup, H20.ai, helps to focus on deep machine learning transparency and model interpretability to predict a better future. It assists in decision-making process for finance department and equity trading floor such as market making, providing liquidity to the bank and many more.
4. This is the best opportunity to increase growth in hyper-personalised banking through conversational AI. AI will help in 24*7 two-way communication with innumerable personalised responses and feedbacks to the users
Goldman Sachs prefers to focus on the net profit over the investment cost of the AI. The bank is eager to maintain its brand image through efficient customer experience, upgraded security and service enhancement.
For more on AI:
- The past, present, and future of AI in financial services
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How AI can help transform finance professionals into strategic influencers
