Computers are intelligent devices because they use the technology of Artificial Intelligence (AI) that acts as the brain of the device. Computer science is mostly about artificial intelligence and machine learning that are closely linked to one another. These technologies are indispensable for creating smarter and more intelligent systems and devices. Despite many similarities between AI and Machine Learning (ML) that often make people use the terms interchangeably, the technologies are quite different. In a broad sense, artificial intelligence is like a large vessel inside which resides machine learning. In other words, machine learning is a subset of artificial intelligence.
However, to understand the technologies properly, it is essential to understand the differences.
Artificial intelligence and machine learning – how are they different?
Before discussing in detail how AI differs from ML, it is essential to have clarity about the concept behind the technologies. It will make it easy to understand the difference between machine learning and artificial intelligence. The idea of AI revolves around developing artificial intelligence and using it to create intelligent machines that have almost similar thinking abilities to humans and can replicate human behavior. It requires programming to incorporate AI into the systems or devices. On the other hand, machine learning is an application within AI that allows machines to learn from data collected during the use of the machine without the need for any explicit programming.
Wide deployment of AI and ML in financial services
Almost all industries are trying to get the most from machine learning and artificial intelligence to improve efficiencies and productivity and offer better customer services. Adoption of the technology of Artificial intelligence and machine learning in financial services needs special mention because the industry could derive huge benefits by using the dual technology. It helped reduce dependence on the workforce, streamline the work processes with increased capabilities in data handling and develop more accurate predictive models to accelerate growth. Most importantly, AI applications coupled with machine learning helped to reduce fraud.
How the financial services can now offer a much improved customer experience will become easier to understand the benefits of the technology of AI and ML.
Eliminate bias
As AI-driven applications do away with human intervention in analyzing data and arriving at conclusions, it helps to eliminate any bias from the system. The systems do impartial data analysis and present the results based on solid logic without any traces of emotion. The results delivered by the system are so data-driven that there is no room for any manipulation through human intervention.
Speedy processes
Because of real-time data updates, AI and ML processes are faster than manual processes. When integrated with an automated decision-making system, it predicts the behavior of millions of users in a few seconds.
Cost-effective
The AI and ML-driven systems are not only speedy and accurate but cost less than the human models. The technology costs less than the cost of involving humans to perform the tasks.
Besides being more scalable, artificial intelligence and machine learning processes help better understand customer needs and behavior, which aids in significant improvement of customer experience by preventing fraud.
