AI: A Game-Changer in Finance
Artificial Intelligence (AI) is transforming the financial landscape, with a predicted $447 billion in savings for banks by 2023. However, its impact extends far beyond traditional banking, paving the way for decentralised solutions that empower individuals to break away from the limitations of conventional banking.
Broad Spectrum Applications of AI
AI's uses range from chatbot assistants to fraud detection and task automation. About 80% of banks recognise AI's potential benefits, according to an Insider Intelligence report. But more importantly, AI has the power to democratise financial services, making them accessible to all, not just those within the established banking system.
The Rise of Decentralised Finance (DeFi)
Blockchain-based DeFi services are revolutionising the financial industry by allowing people to lend, borrow, trade, and invest independently of banks. AI enhances these services by providing more efficient and personalised experiences. Imagine AI chatbots offering 24/7 financial advice or machine learning algorithms personalising wealth management solutions in a DeFi environment.
AI and Financial Security
Security is crucial in the digital finance realm, especially with the increasing risk of cyberattacks. AI has the ability to identify irregularities in patterns that could indicate fraud, a vital tool as online payment fraud losses could hit $48 billion annually by 2023. This AI-powered security is invaluable in both traditional and decentralised finance.
AI in Corporate Finance: Beyond Traditional Boundaries
In corporate finance, AI can predict and assess loan risks, but it also opens up new opportunities for companies previously restricted by regulated financial markets. With AI and DeFi, businesses can access loans, manage assets, and even launch their own cryptocurrencies.
Benefits of AI in Finance: A Decentralised Perspective
The benefits of implementing AI in finance are enormous, in both traditional and decentralised contexts. AI facilitates seamless customer interactions, reduces repetitive work, minimises human errors, and provides significant cost savings.
The Digital Revolution: A Shift to AI and DeFi
The momentum towards digital services is accelerating, with the spotlight on AI and DeFi. By 2021, global banks' IT budgets are projected to surge to $297 billion. However, the real revolution might be outside the traditional banking sector, driven by younger generations like millennials and Gen Z who prefer digital banking channels.
The Future of Finance: AI and DeFi
The COVID-19 pandemic has further accelerated the transition towards online and mobile banking.
By 2024, it's estimated that 72.8% and 58.1% of US consumers will adopt online and mobile banking respectively.
This digital shift makes AI and DeFi not just useful, but essential for individuals and businesses seeking to stay competitive in an evolving industry.
Conclusion: AI Fuelling the DeFi Revolution
In conclusion, AI has the potential to not only transform traditional banking, but also to turbocharge the DeFi revolution, offering individuals and businesses faster, more efficient, and more democratic financial solutions than those provided by governments and conventional banks.