KARACHI:
Artificial Intelligence (AI) is reshaping the financial sector, particularly in fraud detection and prevention. AI algorithms analyse extensive datasets to swiftly identify irregular patterns in transactions enhancing security and reducing financial losses.
Chatbots and virtual assistants, driven by AI, streamline customer interactions, offering personalised assistance in tasks like account inquiries and investment advice. In investment management, AI’s impact is notable through algorithmic trading and robo-advisors. Algorithmic trading leverages AI for real-time analysis of market trends facilitating data-driven investment decisions.
Robo-advisors utilise AI algorithms to provide automated, personalised investment advice, democratising access to sophisticated strategies for a broader investor base.
While these advancements bring efficiency, they also raise concerns about data privacy, ethical algorithm use and the necessity for robust regulatory frameworks to ensure responsible AI deployment in the financial sector.
Muhammad Usman
Jacobabad
Published in The Express Tribune, December 14th, 2023.
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