Artificial Intelligence has been gaining momentum. As it comes with so many benefits, AI is stealing the spotlight from other technological advances. It has spread its wings into all walks of life since its advent and isn’t stopping soon.
Artificial intelligence is leading the digital transformation strategy in finance as it is helping to send money to Nigeria online. Many online processes are related to finances and involve artificial intelligence in them to move ahead.
A report presented in the World Economic Forum concluded that by 2025 machines will be doing many more tasks than human beings, but this new revolution will create new jobs. Let us view how AI is leading the Digital Transformation Strategy in Finance.
AI is greatly assisting people in handling online financials in an improved way. As a study by SSRN confirms, Hertzfeld (2019) found that 80% of consumers were exposed to chatbots and reported a positive response.
Automation Is Not Intelligence
Automation features and capabilities have dramatically been improving over the years, but automation is not intelligence. It adds many more cognitive abilities to technologies, such as letting companies deduce their human capital needs. In this case, accounting is not an exception as well.
By utilizing accounting software and cloud computing, the modern finance chief may spend time keeping the books, files, and tax returns in order, gathering vast amounts of data and making their computations a lot quicker and easier. The bulk of their time may now be spent analyzing the data to find ways to improve operations and plan strategically.
There is evidence in history that implies that innovation doesn’t destroy job opportunities. For example, in 1910, manufacturing, retail, transport, and domestic services were significant employing sectors in all developed economies. However, some inventions that include dishwasher, the washing machine, and electric stove put an end to the domestic services sector.
Yet, the more significant economies did not experience vast waves of unemployment as new careers in professional services, which didn’t even exist back in 1910, were now being raised. Nonetheless, the finance leaders have to recognize employees’ legitimate fear of getting replaced.
As the employees perceive that the digital transformation may threaten their jobs, they might also push back consciously and unconsciously, hoping that the project will fail. The management will abandon the effort leaving their jobs.
The Start of Change
In the past, one main issue with AI and automation was that most of the systems were only there for the largest companies. Cost-wise, many growth companies were not able to enjoy its benefits. If you are thinking to do money transfer to Nigeria online, you would also see that a considerable turn of AI-driven technology is helping you to proceed with your checkouts and procedures of sending money.
AI can significantly help financial institutions and bankers create predictive models of individual income-earning and repayment capacity by connecting many data points. They may fast track the pace with the credit decisions are taken. AI is mainly helpful in corporate finance as it can help in better prediction and assessment of loan risks.
For companies looking to increase their value, Artificial Technologies that include machine learning may help improve loan underwriting and reduce financial risks. The access to send money to Nigeria online is also a product of the fast and efficient AI systems that let people proceed with their checkouts as efficiently as possible. AI allows people to deal with technology without active assistance provided.