NOVEMBER 14, 2023 – Ideas about money in the 21st century will be extremely different from their perception in the 20th century. And the point is not only the emergence of electronic money and the popularization of cryptocurrencies as their variety but also the active use of AI. AI-based technologies have already revolutionized finance, but their potential is far greater and even more difficult to fully predict today.
Application of AI in Finance
Humans use technologies to make up for some of their limitations or shortcomings. In the same way that machinery once replaced a person in production to compensate for their physical weakness, AI is actively used to compensate for intellectual weaknesses thanks to:
- Lack of fatigue;
- Huge decision-making speed;
- Lack of emotion when making a decision;
- Error protection, and much more.
The financial sector refers precisely to those ones where the intellect plays a paramount role in making decisions. Therefore, it is not surprising that the introduction of AI-based technologies provides incredible opportunities for all participants in financial relationships.
The use of algorithmic trading and bots to conduct financial transactions has not only facilitated the work of traders and allowed them to make transactions 24/7. AI has democratized finance and opened the door to trading for a huge number of investors. Thanks to AI-powered programs, even beginners without deep knowledge of technical analysis can make money by relying on their expert advisors.
Thanks to AI, you can forget about those times when a person collected a lot of documents to apply for a loan and then waited a long time for financial institutions to check all this and issue their decision. AI has made money much closer and more accessible because it allows you to find creditors and get their decision very quickly. For example, if you need a small amount of money and decide to take out a payday loan, the Payday Depot platform will provide you with the most optimal loan offers for your needs within a couple of minutes after submitting your request. Similarly, it has become much easier for lenders to screen potential borrowers and make their decision to grant a loan.
The transfer of financial transactions to the Internet has led to the emergence of a new class of fraudsters who can:
- Use various programs to hack bank accounts and steal depositors’ data;
- Conduct fraudulent transactions;
- Profit from the weak security of e-commerce websites and electronic working environments of financial institutions.
However, AI can tirelessly monitor the behavior of millions of users and notice suspicious financial activity in time, blocking potential scammers.
Tips for Managing Personal or Business Finance
Consultations with professionals in the field of finance are quite expensive, so not everyone can afford to apply for such a service. Financial bot tips can help you manage both your business and personal finances and can be very cheap or even free.
Overall, AI makes finance more accessible to everyone. Financial management, investing, trading, lending, and other activities are becoming open opportunities for those who want to delve into it. And the more interest you show in using advanced technologies, the greater the prospects for financial growth you will find.