is not new, its adoption has expanded in recent years, particularly in areas like fraud protection, prevention, and improving the customer experience. However, it is important to recognize that AI can have both positive and negative impacts on the sector.Every day, banking services are accessed by millions of consumers for things like bill payments, depositing funds, and transferring money.
AI has the power to help banks detect abnormal patterns, identify system loopholes, and then recognize potentially fraudulent activity in real-time. That is why AI systems are superior to manual security measures and detection. AI can be used to rapidly analyze large sets of data that no human brain could possibly process and can come up with AI-assisted decisions and conclusions on an issue when needed.
Let’s not forget that AI systems themselves can still be vulnerable to cybersecurity threats. AI has become a double-edged sword for cybersecurity. On the one hand, it has lowered the barrier to entry into cybercrime, enabling would-be criminals to generate malware even when they lack programming skills and providing more sophisticated criminals with capabilities few could have imagined a relatively short time ago.
Furthermore, banks must ensure the best possible customer experiences to maintain trust in the system. To achieve this, banks should be transparent with consumers about their use of AI applications to protect their data and mitigate security risks. Clear consent from consumers should also be required to ensure that their data is only used for its intended purpose.
One of the concerns is that AI algorithms can be inadvertently unfair and biased in data relating to gender, race, ethnicity, educational background, and location. These biases can lead to limited access to fair credit scoring, investment strategies, and customer service for certain individuals. For this reason, banks looking to take advantage of AI should be smart about it. They should investigate the market and work with providers whose commitment to security and accuracy matches their needs.
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