How Fintechs Can Leverage Artificial Intelligence
People often use machine learning (ML) and artificial intelligence (AI) interchangeably, but in reality, they’re not the same. Machine learning is a vital precursor to achieving AI but not in itself AI. From a fintech’s perspective, applied AI is the ability of a computer program to perform a discreet, human task, such as making a credit or risk determination based on a multitude of available facts.
What’s stopping fintechs from leveraging AI to make better, faster, and more consistent decisions?
Joe DeCosmo, CAO of Enova International and member of the Forbes Technology Council, says many fintechs have started experimenting with AI, but very few have actually brought AI into production. Two key factors still hold fintechs back from realizing AI’s full potential: customer sentiment and assumed risk.
Overcoming consumer sentiment will take time and education, but Joe offers practical steps fintechs can take now to address the risk factor:
- Start with operational use cases in the middle and back office.
- Embrace redundancy and remediation.
- Monitor everything.
“While there is still a lot to learn about AI, businesses can and should benefit from applying AI to operational use cases now,” said DeCosmo.