Artificial Intelligence (AI) has increasingly become the order of the day across varying industries and niches. The high rise of AI has also been noticed in the US financial services industry. Broadridge Financial Solutions, a technology provider to asset managers, banks, and several other businesses recently reported on their survey on artificial intelligence (AI).
Andreas Polycarpou among several professionals in the financial services industry, finds the report given by Broadridge valid. The survey was conducted for 152 financial services professionals at the Securities Industry and Financial Markets Association (SIFMA) Operations Conference & Exhibition in May 2019.
The outcome showed that data mining is the core interest of AI applications with about 36% citation from respondents of the survey. Other related AI applications that follow it include post-trade processing (20%), market analytics (13%), and trading systems (12%).
Andreas Polycarpou, alongside other industry veterans, opinionates the Age of AI they are in their company. Where some are still in the “Enlightenment Age” of AI, others claim to already be in the “Industrial Age” and even in the modern “Information Age” with complete AI package in their products and services. However, a few companies said they are yet to leverage on AI in their company.
The main reasons why leading financial services providers find it essential to invest in AI include the chance of redeploying human capital. Moreover enhanced efficiency and productivity and increased data and security. All these crucial motivations were cited by 51%, 53%, and 69% survey respondents, respectively.
Industry experts, including Andreas Polycarpou, find it encouraging that a large percentage of respondents value and understand AI and its capabilities. Nonetheless, the respondents also pointed out the challenges of AI they are faced with. These include the cost of investment, legacy technology, and the ability to gain executive buy-in.