Finance 4.0 is an era of transformation where algorithms are reshaping the financial landscape, automating tasks, and crunching numbers with inhuman speed. It’s also the age of enabling predictive analytics, risk assessment, and personalised customer experiences. And taking centre stage for the above is Artificial Intelligence (AI).
Although the financial world has always been up to speed with embracing the cutting edge, AI seems to be as intimidating as effective. Amidst the hype of AI’s superpowers, a crucial question has been incessantly echoing: will AI replace HI (human intelligence) in finance?
This is one debate that necessitates consideration of what’s at stake, or if something even is.
Analysis and Experience
AI excels in one-shot learning, gleaning insights from massive data sets, but it lacks the adaptability of HI. While we humans can learn from a single experience and apply that knowledge to diverse situations, AI remains dependent on the data it’s fed. That being said, AI can identify patterns, trends, and anomalies, which might not be immediately discernible to humans, with incredible speed. However, human intelligence contributes context, critical thinking, and domain expertise, ensuring that the insights generated by AI are correctly interpreted and applied to make informed decisions.
Imagination and Recitation
Then comes the realm of imagination and recitation. AI can recite facts and figures with robotic efficiency, but it struggles with creative problem-solving. Humans, with their emotional brains, can envision alternative scenarios, generate original ideas, and adapt to the unexpected. The risk evaluated by crunching extensive datasets can identify potential risks in financial transactions or investments swiftly. Human intelligence can then bring subjective judgement, experience, and intuition to assess nuanced risks that may not be captured by AI algorithms alone.
The Human Side of Chatbot
Customer experience through automated support is a crucial component of utilising AI. Chatbots providing prompt and specific responses to queries about the organisation or products enhance customer experience. As it ensures immediate resolution to inquiries, human support steps in for more intricate queries, giving the customer both speed and hyper-personalisation.
Together for Financial Finesse
This isn’t a competition between AI and HI, but a collaborative performance. AI provides the foundation, the data, and analysis, which informs every decision. HI, then, adds the intuition, the ethical considerations, and the human touch.
Imagine a risk management team. AI can process mountains of data, identifying potential risks and vulnerabilities. But it’s the human analyst, with their understanding of context, industry nuances, and ethical considerations, who decides how to navigate those risks.
The AI-HI collaboration requires careful orchestration. AI, while powerful, can be prone to bias and misinterpretation. Human oversight is essential to ensure fairness, transparency, and adherence to ethical principles.
AI and HI, when working together, can create a financial future that’s efficient, but also responsible and human-centered. Imagine AI informing personalised financial solutions and a human advisor delivering these with understanding and empathy. Fraud detection systems honed by AI’s analytical prowess guided by human ethical frameworks.
Finance is no stranger to cutting-edge technology. Tracing the history of fintech evinces the adoption of technology since the 1980s — or the Finance 3.0 era — when the telex and fax machines came into existence. The combination gained steam when the term, ‘fintech,’ originated in the early 1990s, followed by the introduction of the internet when the finance industry entered the IT age. Every new innovation has only enhanced and not overpowered the sector’s efforts.
Similarly, the future of finance isn’t about AI replacing HI; it’s about the two co-acting. It’s about leveraging the strengths of each to create a world of financial solutions that are not only effective but also ethical and human.
The views and opinions published here belong to the author and do not necessarily reflect the views and opinions of the publisher.
Beyond her corporate roles, Shweta is a dynamic leader who doubles as a motivational speaker and life transformation coach, having conducted numerous inspiring webinars and seminars. Her talks resonate with individuals, empowering them to progress in their careers and assume leadership roles.
Academically accomplished, Shweta holds a bronze medal in Masters of Arts in Literature and a post-graduate diploma in counseling psychology from Tata Institute of Social Sciences.
Be the first to comment on "AI and HI: Collaboration, Not Competition"