Siri is witty, but knows her limits!

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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
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.
STRONG AI
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.

The everyday uses of AI

When it comes to Artificial Intelligence (AI), many of the people I talk to think that it is either something that is coming in the future, or interest in it is limited to geeks. Some see it as a negative tool that will destroy employment for people. And they are surprised when I tell them that they are probably using AI in their everyday lives already — they just aren’t aware that something like a Google search is AI based. And those adverts you keep seeing on social media because one day last week you searched for ‘holidays in the Maldives’ — that’s all down to AI.

Here are some of the everyday uses of AI that you may not be aware of. They have been compiled by 12 experts from Forbes Technology Council.

1. Customer Service

Data analytics and AI help brands anticipate what their customers want and deliver more intelligent customer experiences — better than the old call centre one anyway.

2. Personalised Shopping

When you shop online and you visit a site and look at a product, you may find you suddenly get recommendations for similar products — that’s AI.

3. Protecting Finances

For credit card companies and banks, AI is indispensible, especially in detecting fraudulent activity on your account. It saves all of us from the pain.

4. Drive Safer

You don’t need a self-driving car to use AI. For example, lane-departure warnings, adaptive cruise control and automated emergency braking are all AI functions.

5. Improving Agriculture

Agriculture is an important element of our lives, because we all want and need to eat. AI is improving this important sector with the following examples: satellites scanning farm fields to monitor crop and soil health; machine learning models that track and predict environmental impacts, like droughts; and big data to differentiate between plants and weeds for pesticide control.

6. Our Trust in Information

Trust in information is one of the most critical issues of our current times. We are bombarded with images and articles that we just don’t know if they are telling the truth or not. Experts say that AI will change how we learn and the level of trust we place in information. AI will help us identify the deep fakes and all those methods of sharing ‘fake’ information, and that is very important.

The ways in which we use AI are growing all the time — and if you think you’re not using it, you almost certainly already are.

Who is controlling your financial data?

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A decade ago, and even further back, none of us were aware that our personal data was so valuable. Now, we’ve certainly been made aware that companies are busy collecting as much data about each of us as they can, because the more they know about us, the more power they have over our decision making.

We know that social media channels like Facebook re focused on collecting data about our shopping habits and our political views amongst other things, and that has frightened not a few people, and angered them when they discovered the data was being sold to dark actors behind political lobbying. And while the majority of the public may be being guided by the media towards focusing on social media giants, the banks are busy collecting data about each of us as well.

And, like the social media guys, the banks want to hold on to our data; they don’t want to share it with fintech startups. Because these startups are better positioned to use the data and respond to consumer wants in a faster more flexible way. To that end, there is a battle going on by some of the biggest banks, such as JP Morgan Chase and the Silicon Valley fintechs for possession of data.

Big banks plan to stifle fintech access to data

Nizan Geslevich Packin at Forbes suggests that JP Morgan and Capital One actually have a campaign strategy to control, Silicon Valley fintech startups’ access to consumer financial data. She claims that there is a rising behind-the-scenes tension and “some banks have threatened to block fintech companies’ servers from accessing customer data, in order to improve their customer accounts’ safety and increase consumer protection.” The banks claim that this is in the consumer’s best interests because fintechs “often collect more data than they need, store it insecurely, sell it to third parties, and sometimes also get hacked, exposing account numbers and passwords.” It sounds a lot like political arguments these days, especially in countries with a two-party system, like the USA and UK.

Of course regulation and consumer protection are important; they are two of the cornerstone elements of the financial industry. And yes, cybersecurity is an issue these days, and we should be wary of sharing data with third-parties, but if anyone thinks the banks are occupying the higher moral ground and acting entirely for the benefit of the consumer, then they don’t know banks and bankers that well.

Banks claim to act for the consumer

Banks are acting in their own interest: they are afraid of the fintech newcomers who are currently taking a trickle of their customers, but that could become a major flow.

Not if the banks have their way and find a way to stop the sharing of data. As Nizan says, there are companies like Mint that provide consumers with an aggregated snapshot of their accounts from multiple financial institutions. Without access to the bank data, Mint’s business would collapse. Indeed, most fintechs are reliant on gathering traditional bank data; without it they will not be able to innovate.

The fintechs are not leaving things to chance. They are not waiting for the banks to reduces their access to APIs or stop access altogether. They are looking at technological ways to combat the banks’ blocking technology. And they are lobbying for open banking. This works by allowing fintech companies’ apps to ask consumers for permission to access their accounts, and then requiring that banks abide by that consent.

The battle between the banks and the fintechs is not confined to the USA. In Europe Payment Services Directive II encourages technological developments that disrupt existing businesses by collecting data on savings, spending, wealth management and more.

The struggle continues for control of our data, but has anyone ever asked you what you’d like to do with your financial information and who you are prepared to share it with?

Brexit brings FUD to finance

Brexit is like a long-running soap opera, or a comedy. At times it has come close to being a ‘real life’ version of ‘Fawlty Towers’, the comedy series starring Monty Python’s John Cleese as the ‘Little Englander’ manager of a seaside hotel. It has also resembled a Monty Python sketch, as the Dutch prime minister Mark Rutte, suggested.

But, while we may look on with our mouths wide open in shock at the shambolic mess at the Mother of Parliaments, there are of course serious concerns about the effects of the endless delays. Just yesterday the leaders of the EU 27 granted the UK a further extension until 31st October to sort it out. Is it going to be enough, UK businesses are asking, and they are more fed up with the uncertainty about the future of the UK and its future trading relationship with the EU than many others. And, understandably so. Over the past few months we have heard any number of stories about how the loss of the Single Market and a Customs Union will impact on British businesses in the manufacturing sector, and the automobile industry has already taken a hit, albeit for other reasons as well as Brexit. However, the UK economy relies much more heavily on service industries, especially financial services.

Money is flowing back to the EU

Since the UK voted to leave the EU in June 2016, the passporting rights of the City’s institutions has been of concern. There have been many warnings that the biggest players would decamp to Paris, Frankfurt or Dublin, but so far this hasn’t happened in a major way. However, we have seen money flow out of the UK to the EU. For example, Frankfurt Main Finance noted that it would be moving $800 billion back to Germany this year. And it is estimated that a trillion dollars worth of assets have been relocated from the City to other EU countries.

As Roger Aitken writes for Forbes, the chaos has had a “chilling effect” on financial institutions. How can they plan for the future, or introduce new strategies, when they have no idea what is looming around the corner? As he says: “With no clear framework for how cross-border transactions and interactions will be coordinated in the aftermath of any exit, the desire to take any risks is entirely absent.”

It’s an opportunity for some

Yet there are those who see Brexit as an opportunity. Asaf Elimelech, CEO of trading platform Plus500, which provides online trading services with contracts for difference (CFDs) has noted: “Brexit may be an unwelcome distraction in political terms, but it has been a fertile source of CFD trading opportunities for customers.” However, his seems to be a lone voice in the wilderness.

By contrast, EverFX, the official sponsor of Sevilla FC, has put a halt to its application for a Financial Conduct Authority (FCA) licence that would allow it to operate in the UK. Its CEO George Karoullas

said: ““The whole Brexit debacle has spread a feeling of uncertainty across all industries and economies in Europe, and the trading vertical is not an exception. We consider the U.K. one of the most lucrative, interesting, and challenging markets in the world, and were thrilled at exploring what it has to offer.”,

For now the uncertainty potentially continues until the end of October. The City’s financial institutions have no clearer view of whether they will be able to maintain passporting rights that allow EU firms to have a single license in an EU country and apply it across the region’s Single Market without further approval hurdles, and until that is resolved, we can expect to see hope fade and fear increase amongst the financiers and bankers. The drastic effect that Brexit is having, and will continue to have for some time, on the British economy cannot be underestimated, yet the Leave Voters still think it will all be just fine. Perhaps they should reflect on the fact that the rest of the world sees it very differently, and so does business, which is living with fear, uncertainty and doubt (FUD).