The Artificial Intelligence of Things (AIoT) & its Role in the World of Finance
Do you own a smart device, like an Alexa or have a smart wearable, like a Garmin sports watch?
Chances are you own, use, or have at least encountered some form of smart technology in your life.
But have you ever wondered how these smart devices work? How do they manage to collect and share data and information with other devices, in real-time?
Through the Artificial Intelligence of Things (AIoT).
Let’s find out what the AIoT is, how it works and how it’s affecting the financial industry specifically.
What is the AIoT?
The Artificial Intelligence of Things (AIoT) combines Artificial Intelligence (AI) with the Internet of Things (IoT).
Let’s break it down into two individual parts.
Artificial intelligence is where machines are programmed to mimic actions and think, act and behave like humans. The IoT is a network of ‘’things’’ (like devices, computers or systems) embedded with sensors and software that enable them to connect and exchange data with other devices and systems, via the internet.
So, the AIoT is a set of devices, systems or computers that are connected together by the internet. This network of devices, systems and computers collects data and builds behavioural algorithms that enable them to perform the type of tasks that humans would normally do manually, automatically.
How does the AIoT work?
In short, the AI part of the AIoT makes decisions on what to do with the data that the IoT part collects and passes through. Then, once the AI part has made the decision the IoT carries out the subsequent actions made via the network of devices, systems and computers that are connected by the internet.
Basically, a machine or system will perform a task, collect and store behavioural data from that task and then build a set of behavioural algorithms. It’s these algorithms that enable intelligent decisions to be made without the need for human involvement. These decisions are then passed to a network of connected devices which are embedded with sensors that allow the decisions that have been made to be actioned, without the need for humans.
For example, smart offices use connected devices to collect, store and analyse data, and algorithms are created to automatically control the heating, lighting and security of the building.
But, aside from being able to control the lighting, temperature and security of an office building, how is the financial sector using and benefitting from the AIoT?
How does the finance industry use and benefit from the AIoT?
The AIoT gives companies within the financial industry opportunities to:
- Save time
- Improve quality
- Increase competitiveness
How the AIoT saves time
“According to research, the AIoT reduces the time it takes for a human to perform mundane, repetitive tasks by up to 90%.” – Global Banking & Finance
The AIoT enables financial organisations to save time by automating manual, time-consuming tasks. Structured tasks such as sending emails, updating documents, inputting data or completing audits can now be done automatically with the AIoT. So, rather than spending time on low-skilled administrative tasks and activities, employees can focus on the bigger, more strategic tasks that will push the business forwards as opposed to simply keeping it afloat.
How the AIoT improves quality
We all make mistakes. After all, we’re only human. And, although machines can sometimes catch bugs, malfunction or become old, tired, slow and cumbersome, they’re still far more reliable, accurate and less likely to make mistakes than us: Any task that the AIoT does is guaranteed to be completed to a consistently higher standard with fewer errors. So, when it comes to tasks like audits, reporting or compliance protocols, financial companies can rely on the AIoT to make sure they’re completed right, first time, every time. For example, when running an audit, the AI-enabled IoT network of systems can monitor documents and perform analysis against a specific set of rules. It can then identify patterns and establish what’s “normal” and flag anomalies that the auditor can then pass or fail.
How the AIoT increases competitiveness
As we’ve just established, if financial companies integrate the AIoT into their financial business processes and protocols, they will improve efficiency and enhance quality. This will give them a clear competitive advantage over financial institutions that haven’t. Not only that, but the AIoT allows these companies to gather, store and analyse big data that can then be used to inform important decisions around competitive strategies and direction.
This article was brought you by Myriad Associates
Myriad Associates are R&D tax credit and grant specialists that have been in the R&D tax industry for over a decade. With a right-first-time approach and a solid relationship with HMRC, they have a 100% success record and never fail to get clients the maximum amount of R&D tax relief that they’re entitled to. Because they specialise in R&D tax and grants only, they can work with you and your clients to make claiming for R&D tax credits quick, easy and pain-free.