AI & BIG DATA IN FINANCIAL SERVICES

Abstract

Over the past few years, technology has altered the operating psychology of companies. Artificial Intelligence (AI) is becoming increasingly important and in demand, and the financial sector is steadily turning its focus to AI. In a variety of ways, financial institutions are experimenting with and integrating technology. Artificial Intelligence is improving and becoming smarter every day. Investment management companies have embraced Artificial Intelligence at a much faster rate than other industries. This is due to the fact that the financial sector still relies heavily on human involvement in its operations. The Indian banking sector is experimenting with artificial intelligence to improve customer service.

Purpose

As Artificial Intelligence technology reshapes the investment management industry, the aim of this research paper is to define specific use cases so that investment practitioners and firms can take appropriate steps now to navigate the evolving environment and plan for investment success.

Design/methodology/approach

The basis for this research paper is exploratory research. The current analysis is focused on both primary and secondary data. Primary data is gathered from top commercial banks and investment firms' professionals, i.e. ICICI Prudential, BOI AXA, SBI, and Bajaj Finance were asked questions about using Artificial Intelligence to enhance customer service, challenges encountered, and input from customers. Fifty professionals were polled to find out how much they knew about Artificial Intelligence enabled services, how much they used them, and how satisfied they were with them. Secondary data was gathered from a variety of sources, including academic papers, blogs, and documents, in order to ensure a thorough understanding of the topic and the accuracy of the data.

Findings

Big data and Artificial Intelligence have the ability to bring the most dramatic improvement to the investment management industry that current practitioners will ever see. Future successful

vi

investment companies will begin strategically planning their incorporation of big data and Artificial Intelligence techniques into their investment processes right now. Collaborative organisational cultures, cognitive diversity, and T-shaped teams will allow successful investment professionals to recognise and leverage the opportunities brought on by these emerging technologies and applications.

Research limitations

This study is restricted to AI in investment management firms only.