| |JUNE 20258CIOReviewIN MY OPINIONMACHINE LEARNING IN FINANCEBy Emmelda Lawrence, Manager, Digital Servicing - Commercial Cash Management/Treasury Solutions, Fremont BankWhen tasked with writing about "Machine Learning in Finance," my mind immediately reflected on the diverse projects I've been involved in. Each project has been incredibly engaging, from developing ChatBOTs to predicting the top 5 most used features by our users. However, this led me to ponder about AI. The next question was whether machine learning is a component of generative AI and its implications in the banking and finance industries.So, before we delve deeper, let's clarify the distinction between Machine Learning and AI. Machine learning hinges on utilizing data to forecast outcomes or make decisions, while AI is geared towards automating tasks that mirror or surpass "human skill." Both AI and Machine Learning necessitate vast volumes of data for processing and learning. In essence, it is accurate to assert that machine learning falls within the AI domain. When discussing AI in Finance, our audience's reactions vary. Some are enthusiastic, while others adopt a more cautious "wait and see" attitude. This divergence stems from the belief that finance and AI may conflict regarding regulations, policies, and controls. Banking and finance are integral to our economy's stability, serving as the foundation for our financial well-being. These sectors prioritize trust and accountability, which are essential for the nation's economic health. Despite facing challenges like stringent regulations, they remain vigilant in protecting against risks and fraud, ensuring a secure financial environment.AI, on the other hand, is reshaping the banking industry, introducing innovative solutions, and enhancing efficiencies. However, work must still be done to regulate AI usage, strengthen privacy controls, and improve risk management strategies. The future holds promising advancements as we navigate this evolving landscape.Many clients and businesses may not realize that AI and machine learning are not new concepts in the banking industry. And you don't need to be a data scientist or physicist to tame and master these advancements. You don't have to learn about neural nodes and the billions of connections required to create products that will streamline complex processes, reduce manual hours, and automate complex tasks.Banks and FinTech have been leveraging these technologies for as early as two decades. My journey with machine learning began seven years ago when we explored implementing a ChatBot for our customer support tools, a SAAS product that had already been around for an additional five years. Emmelda Lawrence
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