Chatbots are making their way into various industries, including retail, and more lately the financial industry. One area in particular that seems to have taken a little longer than some to come on board is the world of investment banking. But like with every other industry that’s seen the light and adapted to artificial intelligence (AI), the technology is there to help not hinder the sector.
Investment banking has always been a high-risk role wherever humans are involved. Being in control of large amounts of other people’s cash is serious business. The problem is that humans are just that – they’re human. Unfortunately humans make mistakes, and have emotions, whereas artificial intelligence (AI) doesn’t.
Unfortunately as far back as history goes involving human traders, deception has been a part of it as people become greedy. One of the main benefits of using AI in place of humans here is that they have no ulterior motive, can work 24/7, and have an accuracy far better than any human. But rather than replace humans altogether, the ideal solution would be one that involved the two working alongside cooperatively.
The banking industry is quickly adapting to AI, particularly in the forms of chatbots. Some banking startups such as Revolut and Cleo already use AI chatbots, but they’re still quite limited as to what they can do. Rainbird is a cognitive reasoning platform that allows AI technologies to use data to make human-like decisions. It enables AI to deal with less complicated issues and leave the more complex problems to human traders.
Cryptocurrency is another hot topic currently. More and more people are investing in this area, so in order to secure the best deals traders need to move fast. But, it’s not without its issues either. For AI, working across fragmented environments offered by wallets, ICOs, exchanges, and private offerings is no problem.
By using AI chatbots for trading firms can have the best of both worlds. Information can be gathered from a wider range of sources than a single human trader could possibly reach while the whole real-time interaction process remains stable.
When it comes to decentralised trading, the key is not the new cryptocurrencies themselves, but a broker that travel at the same speed as them. By first opening up and simplifying the market for more people to have access, means new opportunities for the financial sector.