Why AI is a Game Changer in Risk Management

CIO Applications| Tuesday, March 03, 2020

AI in the business ecosystem can identify patterns and connections, thus giving possibilities to improve risk management.

FREMONT, CA: Artificial Intelligence (AI) is one of the key drivers transforming the business landscape. However, the most important application of AI in business is risk management. It provides enterprises with tools and applications to identify potential risks and fraud. AI solutions are able to fuel firms with trusted and timely data for building competence and successful implementation of their strategies.

Chatbots and customer-facing AI applications have obtained a lot of popularity when it comes to risk mitigation. Employing AI to prevent or manage risk essentially makes sense, especially when the businesses are unable to identify money laundering and hazardous fraud strategically. Robust risk detection systems place customers at ease and enhance the business' reputation. For instance, consumers are more likely to do business with brands with a track record of thwarting cyber attacks. Also, enterprises would acknowledge the significant time and cost savings by using AI to automate absolute compliance, cybersecurity activities, and fraud detection

Businesses cannot take compliance, fraud detection, and cybersecurity lightly as they would have to end up disastrous. The consequences that companies have to face as a result of failing to identify and prevent money laundering could be hurting the reputation built with hard efforts. Additionally, losses posed by attackers are eye-watering. Given the business's focus on automation, compliance-handling teams are possibly to drive the department towards the integration of AI. Believing that AI is to aid as expected, business leaders are ensuring that the AI applications at organizational levels are continual and yield ROI along with sustaining enthusiasm for experimenting with the technology.