How AI and ML Will Impact Finance Next Year
January 4th, 2022.
- 2021 was a year which marked by the implementation and execution of the quick and rapid digital transformations and changes that started accelerating tremendously when the coronavirus pandemic initially hit the world in the year 2020. The businesses around the world invested heavily in transforming to meet the requirements and needs of the new normal—remote working, social distancing, and the business world changed drastically perhaps forever.
- Now, as we move into 2022, it’s crystal clear that those developments are here to stay. Trends are fast becoming industry standards and there is a reinvigorated focus and concentration on consumer-friendly tech. Naturally, the AI (artificial intelligence) and ML (machine learning) are at the heart of this, and it comes as no astonishment or surprise that the industry is predicted to be worth over $17,440 million with a CAGR of the 17.9% by the year 2027. The only question is, how will companies use these tools to implement or execute digital transformation and more significantly make it count?
Into the near future—trends for the year 2022 and beyond?
- As we move forward into 2022, let’s take a peek at some of the top ways AI and ML are transforming today and in the near future.
Data analytics becomes more than just about the statistics
- Over the last few years, the value of data has been growing drastically. Armed with the right knowledge, companies can seek to ‘hack’ the market and improve and better their offerings to suit consumer demand. It’s estimated that by 2025, more than even 180 zettabytes of data will be in existence. Two years later, by 2027, the data market is set to be measured or valued at over $103 billion. But what does this actually mean for the companies and businesses?
- Long story short, it means that companies will invest heavily in the unlocking and understanding the data they have and seek to acquire more to make smart business decisions. Anyway, it’s not just the quantity of data that matters, it’s the quality of the analysis that actually counts. Investments in consumer behavioral analysis are set to rise and grow and there is a renewed focus on gaining a deeper understanding or comprehending of the current market.
Conversational Artificial Intelligence enhances and grows client engagement
- Alongside knowing what your customers want is communicating with them in a proper manner. Nowadays, consumers expect response times to be quicker and faster and more convenient to them—no more office hours, a 24/7 communication is the brand new normal. However, for many businesses, it’s almost impossible and not practical to ensure round-the-clock communications, and this is where conversation AI is coming into the picture.
- With a 3,150% growth rate in terms of successful chatbot interactions between the years 2019 to 2023 (estimated) and an approximate of 862 million hours saved for the businesses in the future, it’s clear that chatbots will transform and modify how the communication is done in businesses in the near as well as the distant future. Conversational AI is transforming and modifying the chatbots from a stopgap in the consumer communications to a genuinely useful and beneficial tool to help consumers, and this is something we are very likely to see more of in coming years as AI techniques are able to make chats more ‘human like.’
Module-based solutions are gaining traction
- In the near past, to develop any sort of technical solution, a business would need a team of IT specialists to take charge of every element from the very inception to implementation. Now, all that is changing. Low and no-code module-based solutions and answers are gaining popularity due to their potential to offer clients the ability to customize and build software without having to develop a fully tailored solution. With an estimate revenue generation of $187 billion by 2030, giving it a CAGR of 31.1%, Gartner estimates that over 65% of the organizations will use low/no-code in the future, which will speed up development processes multifold, increase time-to-market, and make adapting and getting used to industry changes so much faster.
Influence of the Metaverse (Web 3.0)
- Ever since Facebook changed its name this month to Meta, the metaverse is all that the world can talk about, and it’s not without a good reason. While by and large, we are not honestly certain precisely how the Metaverse, a shared virtual space, will look like in the 2022 and going forward, there are some things that fintech firms should watch out for. Crypto, NFTs, and even digital tokens are taking on a whole new life, and the way that the finance is done online is changing dramatically. Facebook’s name change could actually prove more than just a rebranding but rather suggests a much bigger development is at the hand.
What areas of the fintech should companies focus on in 2022?
- As we move on ahead and plan for the year 2022 and the future, it’s essential that companies start planning their digital transformations now before it gets too late to catch up to their competitors.
- To choose from the technologies that will reinforce your business in the future, the best thing to do is start strategically planning how this sort of technology will fit in your overall business plan. Analyze and process your business processes and use smart Big Data to discover how you can improve, and meet your consumer’s needs and requirements. The future will no doubt be data-driven so this is a good starting point for any and every business seeking to digitally transform. That being aid, I would encourage any business not to be led by the short-term trends, but to focus and concentrate more on the growth dynamics that we have been seeing, and a sustainable business future.
Thank you for reading this blog! I hope you have a wonderful rest of your day.
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