AI Could Drastically Change Banking, Claims Experts—But, What Are the Risks?

AI is expected to drastically change the banking industry, as claimed by finance experts.

As of writing, artificial intelligence models are still appearing. Aside from the tech industry, numerous sectors are also accepting the arrival of generative and other AI models.

Now, finance experts believe that the rise of artificial intelligence can also change how the banking industry serves users.

AI Could Drastically Change the Banking Industry

According to CNBC's latest report, Hargreaves Lansdown Personal Finance Head Sarah Coles believes that users don't usually notice when AI is being integrated.

"For example, AI is used by banks to track spending and automatically alert people when they spend or reach a specific level in their account," she explained.

But, these use cases are just the beginning of how AI can change the banking industry.

Coles claimed that AI models could soon be used in personal finance. She explained that artificial intelligence could offer more specific and targeted support with financial planning.

Sarah added that AI could help banking consumers get the information they need when they need it, allowing them to have better financial choices.

Aside from Sarah Coles, here are other financing experts who shared their opinions on how AI can change the banking industry:

• Cleo Brand VP Kimberly Dillion: New money management tools powered by AI could arrive.
• University of Surrey's Finance Prof. Bonnie Buchanan: Metaverse services for banking could appear.

Other Use Cases for AI in Banking Industry

Forbes recently listed the obvious use cases for artificial intelligence in the banking industry.

These include the following:

• AI can be used to improve loan application processes.
• Artificial intelligence can help with account inquiries.
• AI tools that can provide financial advice could arrive.
• AI can improve banks' fraud prevention technologies.

Risks Posed by AI in Banking Industry

Although AI could lead to promising enhancements in the banking industry, finance experts said that there could also be risks.

One of these is data safety. Buchanan said that personal financial data could be at risk if AI tools in banking are hacked.

Aside from data safety, using AI in the banking industry could also negatively affect financial literacy, especially when banking consumers become overly reliant on AI tools.

You can click this link to learn more about AI's possible effects on the banking sector.

In other news, experts warned that advanced AIs could infiltrate the 2024 U.S. elections. Recently, AI and robots were used to increase a research lab's speed by 100 times.

For more news updates about AI models and other similar technologies, always keep your tabs open here at TechTimes.