AI and Digital Resources in Fintech: Creating an evolutionary analytic platform for “risk” estimation
This article describes the potential for AI to augment risk estimation for both individual investors and financial market assets. AI processes vast amounts of a variety of data to identify patterns underpinning processes and metrics. Evolving data resources including digital touch points provide AI with attributes that can enhance risk estimation to ultimately augment elements of modern portfolio theory.
There has been heightened emphasis on the utilisation of AI in various applications throughout industries. This algorithmic learning and replication technique that processes data to learn how activities work, has reached intense depths given the creation of vast data resources in the evolving digital era. The results of AI initiatives have been both mixed and alarming as applications including voice recognition, identifying fraud, understanding consumer propensities and replicating tasks performed by humans have intrigued business leaders and heightened concerns in the workforce as to the potential of labour displacement.
One particular AI-based initiative is in
