Due to the global rise and prominence of artificial intelligence (AI), the dynamics in business, law and the economy continue to shift significantly. Like many, the financial industry has adapted quickly and synchronized its services and strategies with modern-day technological advancement. AI has not only altered how products and services are created, provided and marketed, but it has become an integral aspect of day-to-day operations.
Among all available services, the sectors of banking, insurance and investment have all been greatly impacted by the use of AI. As it becomes more practical, employees in the financial industry must receive proper training on how to use AI, navigate its complexities, and rely on its efficiency, accuracy, and machine learning (ML). To provide this training, employers and employees need to understand how AI benefits the financial industry in the first place.
Banks
As with most other business realms, banking has been impacted by AI’s ability to analyze data and automate the work process. For one, chatbots have significantly aided banks in the area of customer service, providing clientele with a quick and easy process of making requests and inquiries. Additionally, AI’s detective qualities can make it useful in recognizing patterns of fraud and then alerting bankers and their clientele about suspicious activity. This is done through transaction monitoring, a specific way that AI analyzes the data of customer transactions to detect fraudulent activity and act proactively.
Insurance Companies
Similarly, AI can also be used in the insurance industry to detect fraud. More commonly, however, AI can process claims and assist with underwriting more efficiently. Almost 90% of auto insurance companies plan to increase AI investments to help with tasks such as the speed of processing claims so customers receive the financial support they need at a faster rate. In terms of speed, many life insurance companies have come to rely on AI for a quicker, more efficient way of underwriting to avoid the tedious work of filling out a bunch of paperwork.
Investment Strategies
This productivity also applies to investing, as AI has transformed its entire landscape by incorporating large language models (LLMs). LLMs are a form of AI that understand the intricacies of human language, helping to perform ordinary human work tasks. They are incredibly efficient because of their ability to produce code, interpret various texts and answer questions. They can also make informative predictions with respect to investment opportunities that have the potential to be profitable. This can allow investors to get ahead of the game by gaining clear insights into company income statements, text analysis and financial reports.
How to Train Employees to Use AI
Once these financial sectors are recognized as key beneficiaries of AI, providing employees with the necessary training to use it effectively becomes a critical focus for employers. Employers need to provide finance professionals with opportunities to upskill in AI, ensuring they stay current with the technology already widely adopted across the financial industry. This way finance professionals can have the knowledge to produce higher-quality work at faster rates than ever before. To achieve this, training needs to include the fundamentals of AI, specialized applications, creativity and innovation and problem-solving along with adaptability.
AI fundamentals.
The foundation on which AI stands is the concept of efficiency. Most companies adopting AI aim to work faster, more accurately, and more skillfully. If AI can deliver these benefits, it’s essential to train professionals on its effective use. Employers must focus on training their teams not only in the technology’s operations and benefits but also on the potential risks of overuse. It’s crucial to remember that AI is surrounded by ethical considerations, data types, protections, and regulations that professionals need to understand.
Specialized applications.
Once professionals understand the ins and outs of AI, trainers should proceed in training them on how it applies to daily work activities. This is called a specialized application, which accounts for the various operations of AI and how it can assist company personnel in accomplishing what needs to get done. AI should only be utilized if it is needed, going hand-in-hand with its ethical dilemma. Thus, training employees on the when, where and how of AI applications is crucial. All use of AI should be valuable, assistive and relevant, but never random or unspecified.
Creativity and innovation.
The greatest use of AI is arguably its allowance for creative minds to think outside the box and innovate, implementing real-life scenarios into AI’s machine learning. This is especially necessary when attempting to teach AI through correct prompting, a strategy used to communicate with AI and generate responses from it. This can foster continued learning for both AI and its operators. To maximize the impact of its learning, it can help give prompts, ask questions or make commands. This ultimately can broaden AI’s capacity to absorb new information and rely on previous learning to solve problems or provide answers of substance.
Problem-solving and adaptability.
While problem-solving proves to be one of life’s most important skills, the ability to roll with the punches is equally as valuable. Adaptability is an affirmative sign that people can evolve with the times and changes in the world. It denotes an ability to swiftly transition among advancements in technology, constant innovation, and an ever-growing society. The corporate and financial worlds will inevitably change as well, challenging AI to stay relevant and adapt just as humans are.
The Future of AI in Finance
What remains clear is that AI has tremendous potential and is here to stay. Whether used for fraud detection, data analysis or making predictions, the significance AI holds for the finance industry is limitless. AI cannot only enhance employees’ technical skills but also supports long-term sustainability within the organization. Every company’s best asset is how willing it is to learn and grow, which requires the cooperation of all employees to adapt and evolve.