In 2025, the use of AI in finance will be more prominent than ever. This article explores the top 10 AI use cases in finance, with concrete examples. We’re grateful to AI development company S-PRO for the insights they shared for this article.
1. Self-Service Customer Support
Customer service costs in the financial sector are high, but AI-powered chatbots are helping financial organizations save billions annually. AI chatbots reduce the workload on human agents by handling simple, repetitive inquiries, leaving agents free to deal with more complex issues. For example, BNP Paribas Cardif’s Cardi bot handles common queries for customers, such as how to file a claim, and saved the company $9 million in operational costs over two years. Capital One’s Eno, an AI assistant, helps customers by alerting them to suspicious activities and even locking or unlocking their credit cards upon request.
2. Robo-Advisors/Virtual Assistants
Robo-advisors and virtual assistants have taken over the task of providing personalized financial advice. These AI-driven systems use machine learning and predictive analytics to recommend investments and manage finances. JPMorgan AI engineers are developing a GenAI chatbot, IndexGPT, to help customers select investments based on their needs and preferences, automating the role of a financial advisor. Wells Fargo launched Fargo, a virtual assistant, which handled 20 million interactions by early 2024. The assistant can help customers with tasks such as paying bills and tracking spending. Bank of America’s Erica offers similar services, helping with everything from credit score monitoring to redeeming rewards.
3. Productivity Tools
Generative AI (GenAI) tools are boosting productivity in investment banking and beyond.
Goldman Sachs is experimenting with GenAI to assist its developers in generating and testing code. They claim reducing coding time and increasing productivity by up to 40%.
Similarly, AXA uses SecureGPT, a tool powered by Microsoft’s Azure OpenAI Service, to summarize, translate, and generate text at unprecedented speeds.
4. Fraud Detection
Fraud continues to be one of the biggest headaches for financial institutions. But AI comes into play.
For instance, PayPal has been using AI for over ten years to spot fraudulent activities, resulting in a 50% decrease in fraud losses between 2019 and 2022, even as its transaction volume grew.
Then there’s American Express, which uses LSTM models powered by NVIDIA DGX tech to catch fraud with a 6% higher accuracy than traditional methods. These AI systems don’t just improve accuracy – they’re helping to detect fraud as it happens, ultimately saving time and cutting down on costs.
5. Streamlined Underwriting
AI integration is changing the game when it comes to underwriting, making it quicker and more reliable than ever. Take Lemonade, for instance. Their AI-driven underwriting process analyzes 100 times more data points than the old-school methods, allowing them to offer policies in a matter of seconds. Meanwhile, Rocket Mortgage has its own AI solution, Rocket Logic, that handles the underwriting process almost entirely automatically. This tool alone saves the company about 5,000 hours a month by handling most of the data collection and processing, which means customers don’t have to wait as long for answers.
6. Physical & Behavioral Biometrics
As synthetic identity theft keeps rising, AI-powered biometrics are stepping in to protect against this growing threat. JPMorgan started testing a system in March 2023 that allows customers to make purchases using palm and facial recognition in select U.S. stores. Mastercard, not to be outdone, rolled out a biometric payment card with fingerprint recognition, and BNP Paribas has issued biometric cards since 2021 to approve contactless transactions over €50. But biometrics don’t stop with face and fingerprints– AI is also tracking more subtle signs of behavior, like typing speed and touch patterns, to make sure the person behind the transaction is who they say they are.
7. Usage-Based Insurance (UBI)
AI empowers usage-based insurance (UBI), which assesses driving behavior in real-time and adjusts premiums accordingly.
The Safety Score quantifies driving risk, and premiums are adjusted monthly. Similarly, Geico’s EasyDrive app uses smartphone data to calculate a driving score based on driving habits such as braking, distracted driving, and route consistency. UBI allows insurers to reward safe drivers with lower premiums and collect more accurate risk data.
8. 360-Degree Customer View
AI is helping financial institutions create a 360-degree view of the customer. It analyzes transaction data and customer interactions, predicts churn, recommends relevant financial products, and improves marketing targeting.
For example, Personetics aggregates data from various open banking sources to deliver more relevant recommendations to banks. Similarly, Capital One uses AI to improve conversion attribution and targeting of repeat customers through personalized digital ads. This personalization improves customer loyalty and increases lifetime value.
9. Trade Operations Automation
AI is transforming trade operations by automating tasks such as trade reconciliation and exception management. SmartStream implemented AI-driven reconciliation with SmartStream Air, enabling real-time extraction and comparison of transaction data from multiple sources. This technology significantly reduces human error and accelerates trade settlement, helping institutions meet T+1 trade settlement cycles. AI also aids algorithmic trading by providing real-time analytics and automating buy/sell decisions based on pre-set conditions.
10. Multimedia Claims Processing
AI is revolutionizing claims processing in insurance with using computer vision to assess damages.
Tractable, an insurance startup, uses AI to assess damage from photos and videos submitted by policyholders. This AI system compares the images with historical data to produce accurate repair cost estimates, reducing the need for manual assessments.
CCC also trained a deep learning model on billions of photos of damaged vehicles to improve damage assessment and repair cost recommendations. By streamlining the claims process, AI helps insurers reduce operational costs and improve customer satisfaction.
Read More Details
Finally We wish PressBee provided you with enough information of ( How AI Development Services Can Transform Financial Operations )
Also on site :
- Metal Ions: The Next Frontier in Diabetes Management?
- Who are Hazel Brugger and Sandra Studer? Meet the Eurovision 2025 presenters
- Saudi Arabia and US reach consensus on ending the war in Gaza