The world of finance is always taking advantage of technological innovations to gain a competitive advantage of some kind. In many ways, the one who does not adapt stays behind. When it comes specifically to artificial intelligence tools, as in many other areas, the technology has had a revolutionary effect. Among the different uses of AI for the financial world, we have credit evolution, fraud detection, customer service, and predictive analysis. But that doesn’t end there. Actually, the sky is the limit.
Now, let’s think about Pepe. Who is Pepe? Pepe is a fictional character created especially for this article, which will help us visualize the magic of artificial intelligence applied to finance. Let’s suppose that Pepe is a financial analyst, working for a recognized company, which relies on artificial intelligence to provide the best service to its clients. First of all, he has a chatbot that informs you of everything that happens in the market and gives you recommendations. It also has a financial analysis platform that offers you various artificial intelligence tools. With them you can do wonders such as evaluating credits, detecting fraud, managing collections, doing predictive analysis and creating new offers and business models. All of this makes it more efficient, more accurate, and more personalized than its competitors.
In this case, Pepe has been ahead of his peers by taking advantage of technology at an early stage. While others continue to use traditional methods, he has discovered the advantages of the latest tools. That uneven adaptation creates an imbalance of power.
Of course, Pepe knows very well that artificial intelligence is not a magic wand, but a powerful tool. He knows that it has its limits and its risks, and that he must use it carefully and responsibly. Furthermore, our friend Pepe fully understands that artificial intelligence (at least for now) does not replace his work, but rather helps and empowers him. Thus, he can take advantage of this technology to analyze data, detect trends and make better decisions. Thanks to artificial intelligence, he can improve his performance, his creativity and his competitiveness. For now, Artificial intelligence, for our dear friend Pepe, is an ally in the transformation of the financial sector.
Since the dawn of humanity, man has created tools with the resources of his environment. The objective of technology has always been to facilitate the life of the human being, saving him time and effort in the satisfaction of his needs and purposes. This human ability to apply knowledge gained through observation and experimentation has given humanity enormous technical power over the physical world. However, today, despite the fact that we presume to control the work of our hands, it seems that the impact of technology on us is so strong that we do not know for sure who controls whom. Paradoxically, technology gives us a lot of power but, at the same time, it makes us more dependent. Technology saves us time on the one hand, and, on the other hand, takes it away from us. Sometimes it unites us and other times it separates us. It gives us freedom and ironically it also takes it away. It doesn’t take a genius to know that the actors who best use this technology will be able to eat a much bigger slice of the pie.
What is a machine? A machine is a tool that helps us do things we couldn’t do on our own. For example, a hammer helps us nail with more force than with a fist. A knife helps us to cut with more precision than with nails. A bicycle helps us go faster than walking. Writing helps us remember more than memory. The telephone helps us to communicate with more people than with the voice. Clothes help protect us from cold and heat better than skin. And the computer helps us to think faster and better than with the brain. All this is called power: the ability to do something with more force, speed and effectiveness. Anywayartificial intelligence is an extremely powerful assistant to the mind.
Now, artificial intelligence is one of the most revolutionary technologies of our time. With it, we can do incredible things that previously seemed impossible. But not everything is wonderful. There are also risks and challenges that we must face. In the next 5-10 years, we will experience the first stage of this transformation. At this stage, we will see many glitches and problems that we will have to solve. Besides, We will have to get used to the changes. In other words, we will have to learn to live with the old and the new methods. In this process, something is gained. And something is lost. Is not easy.
Certainly the early user will surely have a competitive advantage over the later users. In short, new technologies do offer us many opportunities and benefits. But, I repeat, not everything is rosy. We must remember that there are also risks and challenges. In many cases, new technologies will eliminate jobs. That’s right. In other cases, they will create new jobs. It is also correct. What can we, mere mortals who seek to make a living, do? My opinion is that we should use these tools to increase our productivity and efficiency as professionals. We must be the first and the best adapted.
Now, we cannot forget the human component. Who is the pilot of this plane? Artificial intelligence (AI) is a technology that allows us to create machines capable of doing things that humans would normally do, such as recognizing images, translating text, or playing chess. AI can be very useful in solving complex problems and improving our quality of life, but don’t get too confident. Although machines can mimic some of our capabilities, they cannot match our experience. The best thing is to combine the best of both worlds: use AI as an aid, but not neglect our human potential. No machine will ever be able to overcome a person leaning on a machine.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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