If you find the prospect of technological advancement exhilarating, there’s no doubt you’ve seen that artificial intelligence has been in the headlines more and more lately.
From universities reporting that students are using chatbots to write essays, to hyper-realistic “deepfakes” that imitate the likeness of an individual, AI has become increasingly prevalent in recent years. Its uses have even started permeating the financial world.
Indeed, This is Money reports that one of the most popular chatbots, ChatGPT, built a portfolio of 38 company shares that was pitted against Fundsmith Equity, one of the UK’s most popular funds.
Even though the chatbot initially seemed to outperform the fund, it was discovered that ChatGPT had slightly underperformed compared to the traditional fund when the returns were converted from dollars into pounds.
Despite this, it’s intriguing to note that 1 in 5 UK adults would consider seeking financial advice from ChatGPT.
While AI still needs to advance somewhat before it can surpass human-led funds in terms of performance, its potential is already captivating. Continue reading to discover the current state of AI and some of its exciting benefits.
Artificial intelligence has been around since the 50s, but it comes in many different forms today
Even though it has become significantly more popular in recent years, artificial intelligence as a concept has been around since the 1950s.
Initially defined as a “machine’s ability to perform a task that would have previously required human intelligence”, AI has undergone significant changes through decades of research and technological advancement.
Perhaps one of the most significant benefits of AI is how it can reduce human error. Computers usually don’t make mistakes if programmed correctly, as their decisions are based on previously gathered information, comprehensive data analysis, and mathematical equations.
What’s more, AI systems have far greater computational power, meaning they can analyse large data sets much faster than the human brain. For example, it would take a human many weeks to go through tens of thousands of lines of data on a spreadsheet, while artificial intelligence could complete it in a matter of minutes.
Even though AI may still have some flaws that need to be ironed out, it already has some interesting uses. Read on to discover five ways artificial intelligence could potentially support you in your everyday life, and how it perhaps already is.
1. Personalised online shopping
There’s a good chance that, at some point in the past, you’ve been shopping online and wondered how the website knows what you were thinking about purchasing. This is because companies such as Amazon utilise artificial intelligence to generate tailor-made recommendations for you.
By using sophisticated algorithms and machine learning, AI can analyse your online behaviour to understand your preferences and predict your potential future purchases.
It does so by scanning your browsing history, preferences, interests, activity on other websites, and even demographic information. This creates a comprehensive profile of your interests and behaviours, allowing companies to offer you helpful and relevant recommendations.
This can benefit both you as a consumer and the company selling the product or service. Not only does this provide you with a user-friendly shopping experience, but it can also give companies the ability to increase sales, and even foster brand loyalty.
2. Smart homes and digital voice assistants
While AI applications have become more apparent in recent years, digital voice assistants such as Siri and Alexa have been around for some time now, already making AI an integral part of your home.
These voice assistants use AI technology to understand and respond to your commands, designed to make your daily life more convenient and efficient. In addition to voice assistants, many other devices in your home have started integrating AI capabilities.
For instance, some smart fridges can analyse the items within and create shopping lists based on what’s missing, ensuring you never run out of ingredients. There are even some thermostats equipped with AI that can learn your temperature preferences and adjust the climate of a room accordingly.
AI’s ability to learn and adapt to your habits and preferences means these smart devices become increasingly intuitive over time, potentially streamlining menial tasks, and ensuring you stay organised.
3. Healthcare diagnoses
Another fantastic way that AI could support you is in medical diagnoses. In fact, it has the potential to run cancer checks, diagnose rare diseases, and even identify women at the highest risk of giving birth prematurely.
AI’s uses in healthcare go beyond diagnoses – it has the potential to improve the entire process of patient care. This is because a vast amount of data is needed from various sources to provide personalised care to patients based on their individual needs and preferences. This includes:
- Medical records
- Lab tests
- Imaging scans
- Genetic tests
- Wearable devices.
So, by using AI, healthcare providers can process and analyse this immense amount of data far faster than a human ever could. The algorithms identify patterns, detect anomalies, and produce meaningful insights to aid doctors and nurses in care and diagnoses.
The idea is that artificial intelligence could speed up diagnoses and treatments, freeing up time for doctors and nurses.
Also, the UK government is already looking to advance AI’s uses in the healthcare sector. Indeed, according to the government, £123 million has been invested in 86 different AI technologies across three rounds of awards, supporting over 300,000 patients.
4. Fraud detection
Unfortunately, fraud and financial scams are increasingly prevalent these days. UK Finance reports that more than £1.2 billion was stolen through fraud in 2022, equivalent to over £2,300 every minute.
However, the good news is that AI can play a role in detecting fraudulent activity and protecting consumers. This is because AI-powered fraud detection systems use machine learning algorithms to continuously scan vast amounts of data in real time.
These algorithms can then identify patterns and anomalies that may indicate malicious behaviour. Better yet, since AI-powered systems monitor transactions in real-time, and machines don’t need breaks or time off, they can identify suspicious behaviour at any time of the day.
Banks and other financial institutions can utilise AI algorithms to perform risk assessments, clarify transactions, and prioritise investigations. And, since AI can process vast volumes of data quickly and accurately, it can significantly enhance fraud detection capabilities.
5. Language translation
When you travel abroad, the language barrier can often seem somewhat daunting. So, AI is revolutionising the speed and accuracy of translations, making it easier than ever to communicate with people from other countries.
This is because AI-powered translation services use advanced techniques and analyse vast amounts of multilingual data to deliver more accurate and natural-sounding translations.
In the past, online translation services struggled with accuracy somewhat due to difficulties identifying contextual clues, often leading to mistranslations.
However, language translation services now use AI to improve accuracy. By analysing a phrase’s surrounding words and sentences, artificial intelligence can gain a contextual understanding and more accurately translate ambiguous words and phrases.
For example, Google Translate utilises machine learning to analyse patterns, context, and vast sets of multilingual data to improve the quality of translations.
Some services even allow you to take a picture of written text in another language and instantly translate it into your own, ensuring you never again order the wrong thing from a restaurant when you’re on holiday.
Get in touch
Even though AI isn’t at the stage where it could efficiently manage your investments, we certainly know what we’re doing.
Please call 01992 500261 or fill in our online contact form to find out how we can help. Since we qualified for VouchedFor’s 2023 Top Rated Firm guide, you can be sure that we’re an award-winning financial planning company that provides an excellent level of advice and service.
Please note
Investments carry risk. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
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