Using Artificial Intelligence in Wealth Management
By Holger Boschke
Chairman, TME AG
Like blockchain, artificial intelligence (AI) is one of the biggest buzzwords in banking and very likely will reshape the way financial services are rendered today. But what exactly is AI and how can it be used in wealth management (WM)? What about its risks and can it replace human intelligence?
What is AI?
The term AI was coined in 1955 by the American computer scientist John McCarthy, based on the idea that “every aspect of learning or any other feature of intelligence can in principle be so precisely described that a machine can be made to simulate it”.1
Other terms – like machine learning, smart automation, cognitive computing, self-service analytics – are all closely related to AI.
What all these terms have in common is that they imply a certain capacity to digest large volumes of complex, unstructured (real-time) data, which enables computers to read, write, speak, listen to, see and interpret that data.
To leverage this capacity, AI platforms need access to high-quality data in huge volumes and regular transactions.
The main drivers for the big data revolution we have already witnessed are volume, velocity and variety of data. Meanwhile, the value and validity of data still seem to be an issue across the WM industry as a whole.
Technology giants like Amazon, Apple, Facebook and Google have been using AI technologies for quite some time. In contrast, banks have been rather slow in ...
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