{"id":25839,"date":"2023-11-09T22:10:36","date_gmt":"2023-11-09T22:10:36","guid":{"rendered":"https:\/\/www.oxfordcorp.com\/?p=25839"},"modified":"2023-11-17T16:33:49","modified_gmt":"2023-11-17T16:33:49","slug":"transforming-finance-the-ai-and-big-data-revolution","status":"publish","type":"post","link":"https:\/\/www.oxfordcorp.com\/en\/insights\/blog\/transforming-finance-the-ai-and-big-data-revolution\/","title":{"rendered":"Transforming Finance: The AI and Big Data Revolution"},"content":{"rendered":"

Artificial intelligence (AI) has evolved so quickly that we barely notice it. The mysteriously veiled technology often works for us behind the scenes, simplifying tasks and complementing human interactions with others and the world.\u00a0<\/span>\u00a0<\/span><\/p>\n

AI habitually does tasks for us that we may not even consider. From using advanced algorithms to process large amounts of data that help the technology learn and assist us more efficiently moving forward, AI is always helping and learning.<\/span>\u00a0<\/span><\/p>\n

Whether we notice it or not, technology continues to permeate our day-to-day routines, even when it comes to our money. AI is increasingly present within banking apps, providing services like facial and voice recognition, sending notifications, detecting fraudulent activity, document reading and processing, predictive analytics, more precise risk assessment, and user experience optimization. AI integrated into banking apps can also monitor and examine our spending habits, personalizing recommendations, such as investment advice, credit offerings, and personal financial management options.\u00a0<\/span>\u00a0<\/span><\/p>\n

Additionally, the rise of algorithmic trading allows for high-speed decisions that capitalize on minute market inefficiencies.\u00a0<\/span>\u00a0<\/span><\/p>\n

Undoubtedly, <\/span>AI and big data have profoundly transformed our lives and how we do business<\/span><\/a>. Technology has touched every facet of the consumer world, ushering in a new era of innovation and efficiency. And despite several global setbacks, it\u2019s not expected to slow down soon.\u00a0<\/span>\u00a0<\/span><\/p>\n

According to Global Market Insights, <\/span>the BFSI market has a projected growth of 20% CAGR from 2023 to 2032<\/span><\/a> due to increased investments in AI solutions and services. The publication states, “Global investments in the FinTech sector grew by over 68% in 2021 compared to 2020.\u201d The impact of AI in the BFSI market was valued at $20 billion in 2022. According to Global Newswire, <\/span>AI in banking accounted for $6.82 billion<\/span><\/a>, fluctuating upward to $9 billion in 2023.\u00a0<\/span>\u00a0<\/span><\/p>\n

The Russia-Ukraine war caused a temporary disruption in global economic recovery from the COVID-19 pandemic because supply chain disturbances and commodity price surges led to inflation taking hold of many markets worldwide. However, steady growth is expected to continue at a CAGR of 32.5% from 2023 to 2027, with AI in the banking market estimated to reach a whopping $27.76 billion throughout those four years.\u00a0<\/span>\u00a0<\/span><\/p>\n

The Combination of AI & Big Data Is Raising the Bar in the Financial Services Industry<\/span>\u00a0<\/span><\/h1>\n

AI is superior at tackling projects that are \u201c<\/span>too much for human minds<\/span><\/a>,\u201d according to a publication by Maryville University in St. Louis, MO. Sorting and analyzing big data is one of those projects\u2014one that can significantly influence decision-making within any organization or institution.\u00a0<\/span>\u00a0<\/span><\/p>\n

In short, data is needed to help AI mature, and AI is needed to sift through and process copious amounts of data. Therefore, AI and big data go hand-in-hand\u2014effectively gathering insights, predicting upcoming trends, gaining a competitive advantage, and achieving desired outcomes.\u00a0<\/span>\u00a0<\/span><\/p>\n

According to the same university publication, Forbes cited research that indicates pairing AI and big data can yield significant results, automating \u201cnearly 80% of all physical work, 70% of data processing work, and 64% of data collection tasks.\u201d<\/span>\u00a0<\/span><\/p>\n

Consequently, these technologies are upping the ante of the financial services industry.\u00a0<\/span>\u00a0<\/span><\/p>\n

Here are some ways AI and big data are impacting the financial world:<\/span>\u00a0<\/span><\/p>\n