Is Digital Economy Smart?
With the advent of smart wallet systems like Paytm in India and the economic systems going cashless is plastic money and virtual wallets a smart move?
Do we understand our basic economic and financial structure?
When a country with primary source of income as agriculture and small traders that depend on everyday cash income flow suddenly decides to go cashless and smart, it leaves the mass in uncertainty. Can Artificial Intelligence (AI) contribute towards the economic growth and change conventional Finance with Technology? Let us examine.
AI has now merged finance and technology and given rise to the emergence of new Fintech interactions in the digital space. Some widely used Fintech tools today with AI are with Credits, Stocks, Insurance in Banking stages.
It is speculated that Fintech powered with AI can solve and combat frauds in the banking world and save revenue worth thousands.
A simple illustration in common occurrence is debit/credit card frauds :
When a Credit card fraud occurs the customer is notified after the transaction is completed and his only option is to then block the card after the loss.
With the introduction of new wave contactless cards this sweep is easier. What choice does the customer have to retrieve the money lost? Often it is a long tedious process to trace the scene of fraud and on most occasions money stolen is impossible to retrieve. Just memorizing PIN and not disclosing the CVV code is not enough to safeguard our hard earned money.
Technology would be helpful when AI can pre-protect this loss by using AI (Deep Neural Network) technology. It can predict the person’s Credit behavior analysis and notify the bank and user for alerts before the fraud can occur. This can be applied in Internet banking and e-wallets too.
AI shall predict the fraud even before it even occurs, automatically generate the reports and launch preventive system on its own and this is the future of smart banking with AI.
AI in Insurance Risk Management and Liability Management will serve as a tool to decrease insurance loss. One of the biggest challenges of Vehicle Insurance (and thereafter Autonomous Vehicles) is to understand the event of an accident and to pinpoint the liability to ascertain insurance claims. In insurance terms this is known as “forensic proof of causation”. In case of an accident the responsibility could lie with the driver (or multiple drivers / reckless driving/ texting while driving etc.), faulty software or hardware operating inside the vehicle, badly configured or hacked network infrastructure or incorrect procedures carried out by the telecom service provider of smart connected vehicles.
What can the AI tech do to combat these challenges?
The AI based connected network can enable an investigator or auditor to pinpoint liability in case of an accident by independently computing the cause using inbuilt Deeptech machine learning. Data study and analytics patterns through integration of various logging systems can generate evidence and actual cause of the accident. This will make insurance claims management seamless and hassle-free. It will also save valuable court time and pending loops of litigation.
What are the risks of virtual money and e-banking?
Virtual wallets are often left unused or money is non-transferable unless a purchase is made. This gives the customer a reason to spend even though he did not intend to. It is similar to a sales pitch where customers are tricked into buying more than they need with bulk offers and discounts.
This is one of the risks of a cashless economy where real money is in deficit and the economy slips into loss. However the virtual wallets show that there is still a lot of money- but only if you spend it. AI can predict consumer behavior and keep them informed as a bot accountant. It can connect all e-wallets and utilize the money and keep the consumer informed about unnecessary expenditure.
Cyber theft and AI
AI and predictive neural network can compute the behavior of e-banking and detect data theft. Are we legally equipped to combat Cyber theft in Finance?
There is a cyber security wing that deals with online monetary frauds but these cannot predict a fraud from happening.
AI can combat data and e-banking theft and inform the consumer before a potential theft risk is detected.
AI Influencer in Finance
The Artificial Influencer, Miquela Sousa, also known as Lil Miquela is a computer-generated teenager and now the world’s most successful Artificial Influencer.
Fashion’s First Computer-Generated Influencer Lil Miquela ( @lilmiquela ) wears Chanel, Prada and Supreme, works with fashion magazines and advocates for social change.
Miquela is an Instagram model and music artist claiming to be from Downey, California. The project began in 2016 as an Instagram profile. Does it matter that she is a virtual avatar?
This is the power of influence of an AI and it is here to stay and grow exponentially.
AI bots and Influencers shall rule in Finance. Because now they will help us make more money and invest it to make more from more.
The AI Singularity as ASI (Artificial SuperIntelligence) shall simultaneously tap into all connected products on the globe from smartphones to armed drones and forever change the way humans live.
Views expressed in this article are the personal opinion of Lubna Yusuf, Founder, La Legal, Co-Founder Fisheyebox Innovation Lab