Back in 1956, a man called John McCarthy coined the term AI for artificial intelligence. However it is only in recent years that we have personally witnessed the benefits of AI, and its mass scale adoption by larger enterprises. One of the things that has encouraged the use of AI is the need to understand data patterns, because companies want to know much more about their target audience and Ai allows them to gain useful insights into consumer behaviour.
There is much to be gained by understanding AI, including the fact that it is segmented into ‘weak’ and ‘strong’ sectors.
Weak AI is also known as Narrow AI. This covers systems set up to accomplish simple tasks or solve specific problems. Weak AI works according to the rules that are set and is bound by it. However, just because it is labelled ‘weak’ doesn’t mean it is inferior: it is extremely good at the tasks it is made for. Siri is an example of ‘Weak AI. Siri is able t hold conversations, sometimes even quite witty ones, but essentially it operates in a predefined manner. And you can experience its ‘narrowness’ when you try to make it perform a task it is not programmed to do.
Company chatbots are similar. They respond appropriately when customers ask questions, and they are accurate. The AI is even capable of managing situations that are extremely complex, but the intelligence level is restricted to providing solutions to problems that are already programmed into the system.
As you can imagine, ‘Strong AI’ has much more potential, because it is set up to try to mimic the human brain. It is so powerful that the actions performed by the system are exactly similar to the actions and decisions of a human being. It also has the understanding power and consciousness.
However, the difficulty lies in defining intelligence accurately. It is almost impossible or highly difficult to determine success or set boundaries to intelligence as far as strong AI is concerned. And that is why people still prefer the ‘weak’ version, because it does not fully encompass intelligence, instead it focuses on completing a particular task it is assigned to complete. As a result it has become tremendously popular in the finance industry.
Finance and AI
The finance industry has benefited more than many by the introduction of AI. It is used in risk assessment, fraud detection, giving financial advice, investment trading, and finance management.
Artificial Intelligence can be used in processes that involve auditing financial transactions, and it can analyse complicated tax changes.
In the future, we may find companies basing business decisions on AI, as well as forecasting consumer behaviour and adapting a business to those changes at a much faster pace.
Artificial Intelligence is going to help people and businesses make smarter decisions, but as always we need to remain mindlful of finding the right balance between humans and machines.