Striking A Balance: Addressing The Dual Nature Of Ai In Banking

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striking a balance addressing the dual nature of ai in banking

Artificial intelligence (AI) has brought transformative changes to various industries, including banking and financial services. While the use of AI in banking is not new, its adoption has expanded in recent years, particularly in areas like fraud protection, prevention, and improving the customer experience, explains Doros Hadjizenonos, regional director at cybersecurity specialists Fortinet. However, it is important to recognise that AI can have both positive and negative impacts on the sector.

Enhancing security measures through AI

Every day, banking services are accessed by millions of consumers for things like bill payments, depositing funds, and transferring money. Its the ordinary nature of these tasks that make them vulnerable to fraud, which is a major concern in the industry. One of the primary motivations for implementing AI in banking is to revolutionise security measures to help prevent these types of attacks through various applications, such as fraud detection and biometrics.

AI has the power to help banks detect abnormal patterns, identify system loopholes, and then recognise potentially fraudulent activity in real-time, says Hadjizenonos. That is why AI systems are superior to manual security measures and detection. AI can be used to rapidly analyse large sets of data that no human brain could possibly process and can come up with AI-assisted decisions and conclusions on an issue when needed.

Ensuring consumer trust in AI-powered banking