Have you ever had the experience of being called by your bank to check the validity of a credit card transaction? Did you ever stop to wonder how this happened? Is a human responsible for manually reviewing all your transactions, or is there some kind of technology at play?

Artificial Intelligence (AI) is the technology that powers these fraud detection and security check capability. In fact, AI can analyse millions of customer transactions 24/7, identifying patterns and anomalies that indicate suspicious activity that warrant a security check. This is just one great example of AI being used it the financial services and banking sector. Adoption of AI is rising rapidly and will be a transformative force and fraud detection and prevention is just the beginning. This article will focus on exploring what is AI in the context of finance.

What is finance?

To understand AI in finance, let’s first focus on the term finance which describes a broad set of activities relating to banking, debt and lending, capital markets: basically the process of raising funds or capital for any kind of expenditure. In essence, the term finance encapsulates money and asset management.

To the general public, our understanding of finance is mostly as a part of our everyday lives such as:

· Financial activities: Financial activities involve the inflow or outflow of money. Examples include receiving wages for labour, buying and selling products (or assets), issuing stocks or taking out loans.

· Financial services: Financial services which involve the acquisition of goods during which financial activities take place. An example is the financial service offered by credit card companies when it accepts and transfers funds between payers and recipients.

What is Artificial Intelligence in Finance — Financial activities and financial services are what the general public are used to

Financial activities and services are what create the world of finance and therefore money, which is what makes the world go around.

What is Artificial Intelligence (AI)?

Artificial Intelligence (AI) is an intelligent machine that has the ability to work independently and perform tasks that we normally consider would require human intelligence. An AI system undergoes a period of learning which involves analysing huge amounts of data. The idea of AI is to let the machine “learn” the best approach to solving a certain problem rather than prescribing the rules that it must follow, as is the case with traditional software. In many cases, a high-performing AI system can make decisions faster and more accurately than a human expert. There are different kinds of AI algorithms and domains that excel at performing different types of tasks. For example, machine learning driven algorithm can quickly quote optimal prices for customers seeking insurance, while reducing cost; Artificial Intelligence could also aid in hiring process by predicting what distinguishing features of applicants are more related to future success. This article will not explore these in depth, but if you’re interested in learning more please visit the Brainpool website and Brainpool blog for various articles about Artificial Intelligence.

Why finance needs AI.

To put it simply “money never sleeps”. The world of finance is constantly moving. Money and wealth are always being created, lost or moving at every second of every day all around the world. According to