August 31, 2016
Every day an infinite amount of unstructured data is being generated and stored by organizations across industries. To make sense of that data and apply it into effective decision-making, companies increasingly lean on AI-powered solutions. A particularly interesting area of AI – cognitive computing – is one of the forces driving transformation in the modern business environment. So how exactly does cognitive computing make a change?
First, let's define the term. As Dr. John E. Kelly III, SVP, IBM Research and Solutions Portfolio, puts it, Cognitive computing refers to systems that learn at scale, reason with purpose and interact with humans naturally. Rather than being explicitly programmed, they learn and reason from their interactions with us and from their experiences with their environment. Those systems generate reasoned arguments and recommendations about more complex – and meaningful – bodies of data, as IBM suggests in the report dedicated to computers, cognition and the future of knowing.
The most important part, however, is that cognitive systems can make sense of the 80% of the world’s data that computer scientists call ‘unstructured’.
In banking, cognitive systems can be applied to extract meaningful insights from major sources of unstructured data. Among those sources, professionals from IBM emphasize:
Effective medical treatments can be developed in the healthcare industry with the application of cognitive systems to clinical data analysis. Moreover, cognitive systems can integrate implications of treatment recommendation for all parties – insurance policy, legal framework, etc. In law enforcement, cognitive systems can analyze data from previous investigation cases to recommend a course of action.
In the attempt to secure a place in the ever-changing environment, financial institutions have to adopt modern technological advancements and redefine their relationships with the customer. Cognitive systems offer an edge in finding a place for a bank’s credit card in one’s wallet or app space on a smartphone’s home screen. Professionals emphasize the following ways in which cognitive systems can empower financial institutions:
There are certainly more areas of banking business where cognitive computing can make a difference. While the process of cognitive computing automation may be a complex task for legacy-controlled ecosystems, it is a matter of survival for banks to pursue the implementation.