Risk Management – The Most Important Application of AI in the Financial Sector

While the rich world of chatbots is associated the most with developments of artificial intelligence, the ability of AI to mitigate risk remains one of the most important areas of development for financial institutions. And no wonder: even though the average support center call is estimated to cost $4.00 in the US, adding up to a significant expense if a support center receives hundreds or thousands of calls per day, it does not compare to the cost and a damage of various forms of fraud to banks, consumers, and merchants. The Ingenico Group estimates that merchants lose on average 1.5% of their annual revenue to fraud attacks. This 1.5% represents product and service losses, chargeback fees, and potential scheme programs. Meanwhile, identity theft, fraud costs consumers more than $16 billion.