Artificial Intelligence Archives | Datafloq https://datafloq.com/tag/artificial-intelligence/ Data and Technology Insights Mon, 27 May 2024 07:36:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 https://datafloq.com/wp-content/uploads/2021/12/cropped-favicon-32x32.png Artificial Intelligence Archives | Datafloq https://datafloq.com/tag/artificial-intelligence/ 32 32 Six Use Cases of Conversational AI in Public Sector Governance https://datafloq.com/read/six-use-cases-of-conversational-ai-in-public-sector-governance/ Mon, 27 May 2024 07:36:36 +0000 https://datafloq.com/?p=1101807 Today's citizens expect seamless, convenient interactions with government entities, akin to the experiences they have with consumer-facing businesses. However, public sector organizations often struggle to meet these rising expectations due […]

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Today's citizens expect seamless, convenient interactions with government entities, akin to the experiences they have with consumer-facing businesses. However, public sector organizations often struggle to meet these rising expectations due to limited resources, complex bureaucracies, and outdated technological infrastructures.

This is where conversational AI – including technologies like chatbots and virtual assistants – emerges as a powerful tool for enhancing public services. It uses the power of natural language processing (NLP) and machine learning to transform how citizens interact with government services. This allows public sector organizations to streamline processes, enhance citizen engagement, and deliver more efficient and responsive governance.

This post explores six use cases of conversational AI in public sector governance, showcasing how these technologies are transforming interactions between governments and citizens.

Six ways to use conversational AI in public sector governance

1. Streamlining citizen services

One of the primary ways of implementing AI in public services is citizen support and service delivery.

Intelligent virtual assistants, like chatbots, can serve as the first point of contact for citizens seeking information or assistance with government services. Deploying these AI-powered tools on official websites and mobile apps can handle common inquiries, such as application processes, document requirements, and service availability.

Available 24/7, they provide instant responses, reducing wait times and making services accessible at any time. This alleviates the burden on human staff, particularly during peak times or high volumes of inquiries. They can also offer multilingual support, catering to a diverse population. And, use data from previous interactions to provide personalized assistance, enhancing the user experience.

An example of this is CHIP, the City Hall Internet Personality, in Los Angeles, which helps residents navigate city services and report issues. Similarly, the IRS chatbot in the United States assists with tax-related questions, alleviating the workload on human staff.

2. Enhancing public health communication

Conversational AI is a powerful tool in the public healthcare domains. These AI systems provide citizens with reliable health information, facilitate appointment scheduling, and monitor public health trends through natural language interactions. This enables public health authorities to efficiently manage large volumes of inquiries and maintain public trust during health emergencies.

The U.S. Centers for Disease Control and Prevention developed “Clara,” a conversational AI assistant that offers accurate, up-to-date information about COVID-19. Clara answers frequently asked questions and tackles misinformation, ensuring that the public receives trustworthy information during the pandemic.

Similarly, in India, the MyGov Corona Helpdesk on WhatsApp was introduced to answer citizens' questions about COVID-19, offering timely and accurate information on symptoms, preventive measures, and vaccination.

3. Improving public safety and emergency response

Conversational AI serves as a valuable solution in enhancing public safety and emergency response efforts. During an emergency, conversational AI assists public safety agencies in giving out crucial information to the public on evacuation routes, shelter locations, and safety protocols – helping citizens prepare for potential disasters. Further, chatbots can gather information from affected citizens, coordinate resources, and provide instructions for response teams.

This allows AI-powered chatbots to play a pivotal role in mitigating risks and ensuring the safety of citizens. They can make informed decisions and take appropriate actions to protect themselves and their families.

A notable example of this is Clara – the American Red Cross's conversational AI assistant.

During disasters such as hurricanes, wildfires, or floods, Clara acts as a reliable source of information for affected individuals. Through various communication channels such as text messages, social media platforms, or the Red Cross website, it provides essential updates on shelter locations, emergency supplies, and safety precautions.

Plus, Clara offers personalized assistance by answering inquiries from individuals seeking help or information, such as finding a nearby shelter, locating loved ones, or accessing emergency resources. It is also integrated with FEMA's database, allowing it to provide more accurate and up-to-date assistance to individuals affected by disasters.

4. Automating administrative tasks

Conversational AI transforms the daily routines of government employees by automating repetitive administrative tasks.
For instance, consider employees within the State of New York's Department of Motor Vehicles (DMV). Instead of manually scheduling appointments, responding to routine inquiries, or providing information on license renewals, DMV employees can rely on chatbots to handle these tasks efficiently.

This automation not only saves time but also reduces the administrative burden on staff members, allowing them to focus on higher-value activities such as processing complex applications, resolving customer issues, or developing innovative solutions to improve service delivery.

Further, conversational AI facilitates seamless internal communications within government offices. Chatbots can assist employees in scheduling meetings, managing calendars, or providing important announcements, ensuring that information is communicated effectively and efficiently across departments.

This way, government employees can work more effectively and collaboratively, leading to improved efficiency, productivity, and overall job satisfaction.

5. Taxation and revenue collection

Tax compliance and revenue collection are essential functions of government, but they can often be complex and confusing for citizens.

Conversational AI can simplify these processes by providing personalized guidance, answering tax-related queries, and facilitating online filings or payments. It understands natural language inputs, allowing users to ask questions in plain language and receive clear, concise responses tailored to their specific circumstances. This helps demystify complex tax concepts and ensures taxpayers have a better understanding of their obligations and entitlements.

Additionally, conversational AI streamlines the tax filing process by guiding taxpayers through step-by-step instructions, helping them complete forms accurately, and providing real-time feedback to prevent errors. Taxpayers can also receive reminders and notifications about important deadlines or upcoming tax events, reducing the risk of missed filings or payments.

Overall, this improves efficiency, transparency, and user experience for taxpayers. Plus, citizens can fulfill their tax obligations more effectively while enhancing government revenue collection efforts.

Consider the experience of taxpayers interacting with the Internal Revenue Service (IRS) in the United States. With conversational AI, taxpayers receive tailored assistance in understanding tax-related processes. These AI assistants are accessible through various channels such as the IRS website, mobile apps, or even voice-enabled devices, providing taxpayers with instant support and guidance at their convenience.

6. Fraud detection and prevention

Imagine having a personal detective at your disposal, tirelessly processing vast amounts of data, analyzing intricate patterns, and alerting you to any suspicious activity. That's exactly how conversational AI can operate within government agencies, serving as an invaluable detective in the department of fraud detection and prevention.

Conversational AI goes beyond mere detection by facilitating proactive fraud prevention. It can automatically generate notifications when suspicious activities are identified, empowering government agencies to intervene promptly and prevent financial losses or protect taxpayer funds.

Conversational AI also fosters collaboration and information sharing among government agencies involved in fraud detection and prevention efforts. This way, agencies can work together more effectively, leveraging their collective resources and expertise to combat fraud.

Further, it safeguards public funds, ensures the integrity of government programs, and ultimately protects the interests of citizens.

Final thoughts

The rapid advancements in artificial intelligence (AI) have revolutionized various sectors – and the public sector is no exception.

As governments strive to meet the evolving needs and expectations of their citizens, we can expect to see even more innovative applications of conversational AI in the public sector,

However, it's important to note that the successful implementation of conversational AI in the public sector requires careful consideration of ethical principles, data privacy, and security measures. Transparency, accountability, and citizen trust must be at the forefront as governments embrace this transformative technology.

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Want to build responsible AI? Build the right, job-ready skills first https://datafloq.com/read/want-to-build-responsible-ai-build-the-right-job-ready-skills-first/ Fri, 24 May 2024 09:56:42 +0000 https://datafloq.com/?p=1101759 It was Mark Zuckerberg who first said that technology teams needed to “Move fast and break things” in order to innovate. But like many practices created in the noughties, this […]

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It was Mark Zuckerberg who first said that technology teams needed to “Move fast and break things” in order to innovate. But like many practices created in the noughties, this motto is no longer fit for purpose in the AI age. As we race towards ever more powerful and insightful AI, we cannot afford to break anything. Because there are real-world, scalable issues that AI can propagate if we do not develop it responsibly right from the start.

This view is shared by many, with a Microsoft executive recently quoted in an internal email (about generative AI) as saying that it would be an “absolutely fatal error in this moment to worry about things that can be fixed later.”

Negativity can rapidly spread

Because AI is increasingly prevalent in our society and workplace, any problems with its workings will rapidly scale and impact many different aspects of our lives. Problematic AI could amplify harmful biases and stereotypes, spread misinformation, cause greater inequity, and infringe individual rights to privacy. In the AI race, it's vital that we plug any ‘ethical debts' as and when they arise instead of putting it off to deal with later. And a large part of that effort will center on having the right skills, at the right level, across your workforce. 

Skills are foundational to responsible AI

Skills that enable greater trust in AI, that mitigates the risks of using it, and that ensures data is protected and used ethically – also known as AI TRISM skills – will be increasingly sought after by organizations. Indeed, a recent survey of IT professionals carried out by Skillable found that over half of IT leaders (51.4%) see AI TRiSM (AI trust, risk and security management) skills as essential to their immediate future success. 

AI TRISM is a framework that ensures organizations are using and developing AI in a reliable, fair, and ethical way, that respects privacy and has clear governance over its use. Some of the areas it covers includes reducing bias, explaining how an AI model comes to its insights, and protecting data. These are all table stakes for the long-term adoption of AI. Without this, the key stakeholders (including the public) won't trust in AI and won't hand over the data or consent needed to make it work. 

Developing AI skill masters

Such table stakes require the best skills. Those aren't built through simply reading or hearing about a topic like AI security or governance. Although learning resources like blogs, books, podcasts, videos, and graphics play a role in building some understanding of AI TRISM, they don't go far or deep enough to ensure true skill mastery. That's what's really needed in organizations innovating with AI – skill masters who deeply understand and can implement clear governance and security around the use of AI. Who can champion AI TRISM in every aspect of their role and share knowledge with others. 

Completion metrics and learning hours don't tell us if a person has actually mastered a skill. True validation only comes from demonstrating and applying skills in the correct way. Otherise, you're left with people that completed learning and felt ready, but couldn't apply the skill in the moment of need. 

Increasing the pace of learning 

Organizations need AI skill masters who can learn quickly as the field is constantly changing. AI patents alone have increased 16-fold in a decade, going from 1974 patents awarded in 2010 to over 31,600 in 2020. This doesn't account for the exponential rise of generative AI, nor advances on the horizon with improved chips, 5G/6G and quantum computing. 

That speed of learning comes through practice and application. Humans evolved to learn through applying their skills. Therefore, if you want your workforce to quickly upskill and reskill in AI skills, you need to give them opportunities to apply their theoretical knowledge on the job. Indeed, that's what two-thirds (67%) of IT professionals say that they want, more hands-on application that stretches and builds their skills. 

Showcasing skills

Moreover, such hands-on learning opportunities give them a chance to showcase and validate their skills, to prove to their employer that they can perform a skill in the workplace. Given that 40% of survey respondents said that current learning technology doesn't allow them to demonstrate their true skill proficiency, this is a much-overlooked area that can really benefit employees and their organizations.

For instance, an employee might want to show their employer that they can build a natural language processing (NLP) solution in Python. They can either take on a stretch assignment that requires them to complete this task to a specific level (validated by manager and peer feedback), they could learn this skill in their spare time and create an NLP as a side project outside of work, or they could complete a skills challenge that would score their work as they build the NLP within a simulated environment. 

Each hands-on learning opportunity offers a chance to apply the skill of building an NLP model, but the last one, the skills challenge, is what truly validates someone's learning. It is scored based on clearly defined parameters, with no potential manager or peer bias. It can be added to someone's learning or skills profile as a credential that shows they've met a certain skill level. Plus, it's easily scalable across a workforce, no matter their location or outside work commitments because the challenge is virtual and can be accessed at a time and place of the employee's choosing. 

Everyone needs baseline AI skills

That scalability is vital, as we cannot prepare future workforces for AI by limiting hands-on opportunities to just a select few. Indeed, a third of employees lack even foundational digital skills and that will significantly undermine any efforts to implement and use AI responsibly. If a major part of your workforce don't understand how AI works, how can they effectively oversee and govern it? 

Ready for the AI era

Hands-on skill challenges ensure that everyone is job-ready, because they help people apply and demonstrate their AI skills in a safe environment that's as close to a real-world project as possible. Set scenarios are created, such as a simulated data breach, and people are guided through it to understand how they need to perform a skill on the job. This shows that the individual can apply their new skills, and also work under pressure. It also gives them the confidence that they are ready for a new task or role. 
 

As AI transforms life as we recognize it, it's vital that the people developing and working alongside it are equipped with the right skills to ensure it benefits society and helps us all become better. That only comes with effective upskilling and reskilling that doesn't just tell someone how to do a skill but shows them through practice and application. 

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How Science Fiction Shapes Tomorrow’s Tech https://datafloq.com/read/how-science-fiction-shapes-tomorrow-tech/ Tue, 21 May 2024 18:43:11 +0000 https://datafloq.com/?p=1101627 The below is a summary of the first episode of my Synthetic Minds podcast. Think science fiction is just for entertainment? Think again. It's time for businesses to read today's […]

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The below is a summary of the first episode of my Synthetic Minds podcast.

Think science fiction is just for entertainment? Think again. It's time for businesses to read today's sci-fi to shape tomorrow's reality.

In the debut episode of the Synthetic Minds podcast, Dr. Mark van Rijmenam chats with Karl Schroeder, a science fiction author and strategic foresight consultant. They delve into how sci-fi narratives, like Schroeder's “Stealing Worlds” and “Lady of Mazes,” provide valuable insights for navigating future technological landscapes. These stories blend AI, blockchain, and mixed reality to imagine radical shifts in governance and personal freedoms, offering more than mere escapism-they propose tangible scenarios grounded in extensive research.

Schroeder argues that science fiction should be a mainstream tool in strategic foresight. By translating complex foresight findings into engaging narratives, organizations can better understand potential impacts and prepare for future challenges. His novels explore alternative economic systems and the evolving relationship between humans and AI, challenging traditional governance models and highlighting the societal implications of converging technologies.

The podcast also touches on the unintended consequences of technology, like the paradoxical effects of social media and privacy challenges in an interconnected world. Schroeder emphasizes the importance of governance in this era of rapid technological change, suggesting that organizations must remain grounded in serving real-world needs. He posits that governance will be the “killer app” of the next generation, urging leaders to engage with contemporary sci-fi to navigate these complexities.

To read the full story, please proceed to TheDigitalSpeaker.com.

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Same AI + Different Deployment Plans = Different Ethics https://datafloq.com/read/same-ai-different-deployment-plans-different-ethics/ Thu, 16 May 2024 08:27:07 +0000 https://datafloq.com/?p=1101147 This month I will address an aspect of the ethics of artificial intelligence (AI) and analytics that I think many people don't fully appreciate. Namely, the ethics of a given […]

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This month I will address an aspect of the ethics of artificial intelligence (AI) and analytics that I think many people don't fully appreciate. Namely, the ethics of a given algorithm can vary based on the specific scope and context of the deployment being proposed. What is considered unethical within one scope and context might be perfectly fine in another. I'll illustrate with an example and then provide steps you can take to make sure your AI deployments stay ethical.

Why Autonomous Cars Aren't Yet Ethical For Wide Deployment

There are limited tests of fully autonomous, driverless cars happening around the world today. However, the cars are largely restricted to low-speed city streets where they can stop quickly if something unusual occurs. Of course, even these low-speed cars aren't without issues. For example, there are reports of autonomous cars being confused and stopping when they don't need to and then causing a traffic jam because they won't start moving again.

We don't yet see cars running in full autonomous mode on higher speed roads and in complex traffic, however. This is in large part because so many more things can go wrong when a car is moving fast and isn't on a well-defined grid of streets. If an autonomous car encounters something it doesn't know how to handle going 15 miles per hour, it can safely slam on the brakes. If in heavy traffic traveling at 65 miles per hour, however, slamming on the breaks can cause a massive accident. Thus, until we are confident that autonomous cars will handle virtually every scenario safely, including novel ones, it just won't be ethical to unleash them at scale on the roadways.

Some Massive Vehicles Are Already Fully Autonomous – And Ethical!

If cars can't ethically be fully autonomous today, certainly huge farm equipment with spinning blades and massive size can't, right? Wrong! Manufacturers such as John Deere have fully autonomous farm equipment working in fields today. You can see one example in the picture below. This massive machine rolls through fields on its own and yet it is ethical. Why is that?

In this case, while the equipment is massive and dangerous, it is in a field all by itself and moving at a relatively low speed. There are no other vehicles to avoid and few obstacles. If the tractor sees something it isn't sure how to handle, it simply stops and alerts the farmer who owns it via an app. The farmer looks at the image and makes a decision — if what is in the picture is just a puddle reflecting clouds in an odd way, the equipment can be told to proceed. If the picture shows an injured cow, the equipment can be told to stop until the cow is attended to.

This autonomous vehicle is ethical to deploy since the equipment is in a contained environment, can safely stop quickly when confused, and has a human partner as backup to help handle unusual situations. The scope and context of the autonomous farm equipment is different enough from regular cars that the ethics calculations lead to a different conclusion.

Putting The Scope And Context Concept Into Practice

There are a few key points to take away from this example. First, you can't simply label a specific type of AI algorithm or application as “ethical” or “unethical”. You also must also consider the specific scope and context of each deployment proposed and make a fresh assessment for every individual case.

Second, it is necessary to revisit past decisions regularly. As autonomous vehicle technology advances, for example, more types of autonomous vehicle deployments will move into the ethical zone. Similarly, in a corporate environment, it could be that updated governance and legal constraints move something from being unethical to ethical – or the other way around. A decision based on ethics is accurate for a point in time, not for all time.

Finally, it is necessary to research and consider all the risks and mitigations at play because a situation might not be what a first glance would suggest. For example, most people would assume autonomous heavy machinery to be a big risk if they haven't thought through the detailed realities as outlined in the prior example.

All of this goes to reinforce that ensuring ethical deployments of AI and other analytical processes is a continuous and ongoing endeavor. You must consider each proposed deployment, at a moment in time, while accounting for all identifiable risks and benefits. This means that, as I've written before, you must be intentional and diligent about considering ethics every step of the way as you plan, build, and deploy any AI process.

Originally posted in the Analytics Matters newsletter on LinkedIn

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Big Data & AI World Asia 2024 https://datafloq.com/meet/big-data-ai-world-asia-2024/ Wed, 09 Oct 2024 07:00:00 +0000 https://datafloq.com/?post_type=tribe_events&p=1101313 Big Data & AI World Asia is the premier destination for data and AI innovators, technologists, and business leaders.' If you are responsible for developing, implementing, or maintaining your organisation's […]

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Big Data & AI World Asia is the premier destination for data and AI innovators, technologists, and business leaders.'

If you are responsible for developing, implementing, or maintaining your organisation's data, AI, analytics strategy, infrastructure, and data governance initiatives, you have to attend Big Data & AI World Asia on 9-10th October 2024 to meet Asia's data community.'

We are one of the largest Big Data & AI events in Asia where IT professionals can learn from industry thought leaders, network with peers, seek advice, and evaluate the latest solutions and services to help shape the future of their business.'

Enjoy >200 hours of content across three conference theatres that will educate and inspire you, including workshops and discussions that will cover current trends such as Hyperpersonalisation, Conversational & Generative AI, Advanced Analytics, Data Strategy, and Decision Intelligence to keep you ahead of the game. Visit our website for more information on our conference theatres.

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AI vs. Humanity: Who Will Come Out on Top? https://datafloq.com/read/ai-vs-humanity-who-will-come-out-on-top/ Tue, 14 May 2024 13:06:55 +0000 https://datafloq.com/?p=1101152 The below is a summary of my recent article on superintelligence. Elon Musk predicts that Artificial Superintelligence (ASI) will emerge by 2025, much earlier than his previous estimates. While Musk's […]

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The below is a summary of my recent article on superintelligence.

Elon Musk predicts that Artificial Superintelligence (ASI) will emerge by 2025, much earlier than his previous estimates. While Musk's track record with predictions is mixed, this one sparks serious contemplation about the future. The moment AI surpasses human cognitive abilities, known as the singularity, will usher in a new era with both unprecedented possibilities and profound perils. As we edge closer to this event horizon, it's essential to ask if we are prepared to navigate the uncertainties and harness the potential of AI responsibly.

The journey towards ASI has been marked by relentless innovation, from basic algorithms to sophisticated neural networks. Unlike human intelligence, which is bound by biological and evolutionary constraints, AI evolves through engineered efficiency. This liberation from natural limitations allows AI to explore realms of capability and efficiency far beyond human comprehension. For instance, while human intelligence is based on carbon, AI, created with silicon and possibly photons in the future, offers a significant leap in processing power. This engineered intelligence is poised to redefine what is possible, extending far beyond human problem-solving abilities.

However, the path to Superintelligence is not smooth. It is a jagged frontier filled with challenges and opportunities. Some tasks that are trivial for humans, like recognizing facial expressions, are monumental for AI. Conversely, tasks demanding immense computational power are effortlessly executed by AI. This disparity highlights the dual nature of emerging intelligence. As AI integrates deeper into society, it necessitates a re-evaluation of what intelligence truly is.

A significant concern with advancing AI capabilities is the alignment problem. As AI encroaches on domains traditionally considered human, the necessity for a robust framework of machine ethics becomes apparent. Explainable AI (xAI) ensures transparency in AI's decision-making processes, but transparency alone doesn't equate to ethicality. AI development must include ethical considerations to prevent misuse and ensure these powerful technologies benefit humanity. The alignment problem explores the challenge of ensuring AI's objectives align with human values. Misaligned AI could pursue goals leading to harmful outcomes, illustrating the need for meticulous constraints and ethical frameworks.

The rise of Superintelligence represents a metaphorical encounter with an “alien” species of our own creation. This new intelligence, operating beyond human limitations, presents both exhilarating prospects and daunting challenges. As we forge ahead, the dialogue around AI and Superintelligence must be global and inclusive, involving technologists, policymakers, and society at large. The future of humanity in a superintelligent world depends on our ability to navigate this complex terrain with foresight, wisdom, and an unwavering commitment to ethical principles. The rise of Superintelligence is not just a technological evolution but a call to elevate our understanding and ensure we remain the custodians of the moral compass guiding its use.

To read the full article, please proceed to TheDigitalSpeaker.com

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5 Transformative Ways AI is Driving the Open Finance Revolution https://datafloq.com/read/5-ways-ai-driving-open-finance-revolution/ Tue, 14 May 2024 12:54:38 +0000 https://datafloq.com/?p=1100595 The finance sector has often struggled in the 21st Century to fully embrace digital transformation. However, the ongoing generative AI boom has all the necessary components to deliver an Open […]

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The finance sector has often struggled in the 21st Century to fully embrace digital transformation. However, the ongoing generative AI boom has all the necessary components to deliver an Open Finance revolution that can bring widespread modernization to industry processes.

Although it's been relatively slow in the uptake of digital transformation, the impressive growth of Open Banking has shown that there's plenty of room for innovation throughout finance.

While Open Banking refers to the exchange of services and data across financial institutions, Open Finance represents the next step in digital transformation and empowers trusted third parties to utilize customer data to deliver more transformative access to services such as banking, credit, alternative payments, financial advisors, insurance, investment tools, spending insights, mortgages, pensions, and a wide array of other fintech tools.

This next generation of finance can be leveraged by artificial intelligence, and the ongoing AI boom is already providing us with insights into how it can drive the growth of Open Finance.

Uniting AI and Open Finance

At its core, AI helps to harness the power of data effectively throughout the financial landscape. This bodes well for Open Finance, which is dependent on rich, structured data that artificial intelligence algorithms can deliver for effective decision-making.

This can help to enhance and automate processes that customers have long grown accustomed to in traditional finance. From personalized experiences at local branches to bespoke financial advice, AI helps to maintain the local aspect of finance in a world that's attempting to replicate physical connections in a digital landscape.

The post-pandemic era has seen many traditional financial institutions abandon their brick-and-mortar stores in a bid to tap into the cost-effectiveness and efficiency of Open Banking. While this can be a jarring shift, the ability of AI to accelerate Open Banking into a more functional Open Finance model could be a timely upgrade.

But how exactly will the artificial intelligence revolution support the growth of Open Finance? Let's take a look at five ways the innovative technology will transform the industry:

Embracing Predictive Analytics

One vital reason why AI is an excellent driver for Open Finance is because of its ability to algorithmically analyze historical data to anticipate future outcomes and trends.

In terms of Open Finance, this means that artificial intelligence has the power to anticipate customer behavior, identify risks before they emerge, and tap into its wealth of insights to optimize business processes in ways that human staff may be unable to recognize on such a rapid basis.

For instance, an integrated AI algorithm can utilize available customer data to create a bespoke analysis of a customer's risk of defaulting on a loan based on a multitude of behavioral, historical, and external factors. This paves the way for a better understanding of risk and allows institutions to adapt offers to mitigate the risk involved.

The emergence of generative AI can also enhance predictive analytics further by allowing firms to utilize synthetic data in understanding customer behavior. In the age of GDPR, synthetic data can be an excellent solution for bridging analytical gaps due to the unavailability of data.

The Age of Rapid Decision-Making

The ability of AI to get to grips with big data and drive actionable insights for decision-makers means that more institutions will be capable of reacting faster to the bespoke needs of customers.

Here, the technology can aid the reaction times of just about every player in Open Finance, from underwriters to customer service agents, in automating routine tasks to help employees allocate far more attention to any cases that are too complex to be handled by the AI.

In practice, this means that artificial intelligence can actively enhance decision-making in a cost-effective and efficient manner while humans can tap into actionable insights for more responsiveness when it comes to outlying cases.

The use cases for AI-driven decision-making in Open Finance are already growing. According to Suzanne Homewood, Decisioning Managing Director at Moneyhub, one lender saw a 15% dropout rate in loan applicants that AI flagged as fraudulent, while in Open Banking, loans made with better-informed decisions have been found to perform 50% better than others.

Personalization for Life After Branches

One of the biggest issues that digital transformation in finance poses is the loss of those personal connections that customers are accustomed to with brick-and-mortar banking. For many individuals who have long expected to be able to visit their local branch to speak to advisors who they're familiar with, the post-pandemic closure of banks has been jarring.

Artificial intelligence can help to restore this highly sought-after personable feeling among customers and recapture trust that may have been tested during the financial sector's push towards digital transformation.

“An example is AI-powered personalized conversational interfaces and biometric profiles that have shown promise in helping vulnerable consumers avoid debt traps fueled by late fees and inflexible payment schedules,” notes Charlene Coleman, Senior Managing Partner at Launch Consulting Group.

Additionally, big data analytics can help Open Finance services to understand their customers on a far more comprehensive level. In practice, this would mean that entire interfaces and fintech platforms could adapt directly to the customer's perceived requirements. Is a customer using a platform to invest in tech stocks? Then their portfolio will be displayed on their home screen. Has a customer been saving for a mortgage? The portfolio can load their cash ISA on launch.

It's through this comprehensive behavioral understanding that AI can help Open Finance deliver personalization on a level that can be even more convenient than before.

Live Compliance Monitoring

At this stage, it's crucial to highlight that Open Finance certainly carries a greater level of risk for customers and institutions alike. At its core, Open Finance services would be built on the widespread sharing of highly personal financial data for a multitude of customers. This means that the risk of data breaches could cause damage on an unprecedented scale to users.

With this in mind, we're likely to see the regulatory landscape surrounding Open Finance become increasingly stringent as the ecosystem grows. When backed by a sufficient AI framework, the challenge of compliance among challenger banks and fintechs can be simplified.

Let's look at the European Union's regulatory outlook for open finance as an example. The EU recently updated its Payment Services Directive (PSD) to better accommodate the emerging technological landscape and ensure that data is shared safely throughout the bloc's financial institutions.

As these directives are continually updated to ensure the safe flow of information throughout the financial landscape, artificial intelligence and generative AI tools can help to actively monitor compliance throughout the flow of Open Finance services, and could even make adjustments on the fly should incidents or possible inefficiencies threaten the legality of certain services.

Open-All-Hours Support

Generative AI is already making a significant impact on the quality of support offered to customers. As finance becomes increasingly digitalized, it's been a challenge for many institutions to replicate the quality of service that customers have lost in the closure of many local branches.

However, large-language models (LLMs) and virtual assistants are actively revolutionizing support systems in Open Finance.

With 24/7 coverage, these chatbots can respond immediately to queries, answer FAQs, and guide users through complex processes in an adaptable way. With the ability of LLMs to generate bespoke responses for more difficult issues, this support can become a reliable way of maintaining customer satisfaction while actively supporting tasks like loan applications, account management, and transactions to ensure no business is lost along the way.

AI to Drive the Digital Transformation Revolution

Given the necessity of access to financial services for everybody at all times, the digital transformation revolution in finance is nothing short of essential.

While the post-pandemic landscape has been a challenging one for traditional finance, the arrival of Open Finance powered by artificial intelligence is set to recapture the essence of personalization and adaptability lost with the closure of local branches.

With powerful insights and the ability to offer more bespoke services instantaneously, AI has the potential to take the financial sector to unprecedented heights. While this will bring new regulatory challenges, it's shaping up to be a key stepping stone in the Open Finance revolution.

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The Role of Artificial Intelligence in Facial Recognition Technology https://datafloq.com/read/the-role-of-artificial-intelligence-in-facial-recognition-technology/ Tue, 14 May 2024 09:27:16 +0000 https://datafloq.com/?post_type=tribe_events&p=1101126 The scope of security has changed with the advent of technology. There was a time when a couple of guards standing outside the building room would have sufficed. But in […]

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The scope of security has changed with the advent of technology. There was a time when a couple of guards standing outside the building room would have sufficed. But in today's time, we all know that a 16-year-old kid hacker with a laptop and wifi is more dangerous and can do more damage than a six-foot-four marine. Hence, modern times call for modern security measures. 

In the pretext of the above-mentioned idea, we are seeing artificial intelligence playing a crucial role in offering a robust security mechanism. Let's take the example of security camera systems for instance. Artificial intelligence is playing an important role in providing face recognition technology that can help identify and verify numerous people in a matter of minutes. 

The best thing about this technology is that it can identify people who are considered dangerous or suspicious. Moreover, monitoring large groups of crowds is very difficult for human beings. So using AI can help identify potential threats. Most importantly, kids who get lost in malls or large places could be identified with the help of face detection systems. 

Now that we have discussed a basic use case of AI in facial recognition, it is imperative to understand what AI facial recognition is.

Understanding AI Facial Recognition

AI facial recognition is a type of biometric identification that uses AI algorithms to seek people by their facial features. Hence, the utility of this technology is quite vast.

The Working of AI Facial Recognition Technology

AI for security camera systems is becoming more commonplace, with AI-powered systems being used for everything from tagging friends in photos to unlocking phones and breaking into homes. So how does this technology work? 

This information is used to train the system to recognize each person's unique patterns and characteristics. Once the face recognition system is trained, it can be used to identify faces in photos and videos, even if they are vague or poorly defined. If a match is found, the system sends a notification. By recognizing some important features of a person's face, such as the position of the eyes, nose, and mouth, even a hidden or shadowed part of the face can be matched.

From security and law enforcement to business and customer service. Businesses and individuals need to understand these technologies and how they are used. We know that security cameras use artificial intelligence to perform facial recognition. On the other hand, it is also used to detect suspicious behavior. 

Utility

AI has taken the digital realm by storm. People, businesses, and governments are concerned about the threats and opportunities posed by this technology. For instance, there are various applications for this technology as mentioned before. 

The first thing that comes into everyone's mind is that ai face recognition is mainly used for security purposes. Airports and places where tourists come often use this technology so that any terrorist activity can be prevented. On the other hand, people are always traveling, hence the need for providing security to them is high. Using this technology will enable a safer environment. 

Organizations that are concerned with providing security such as law enforcement services have a great use for this technology. They can look for criminals and protect the community from any source of threats. On the other hand, retailers have utilized this technology to offer enhanced customer services. Meanwhile, they can also deter people from the activity of shoplifting. 

Companies related to media also have a great utility of this tech. They can use it to check people's photographs. The AI matches the photographs from large data sets. So it becomes easy for firms to see if they find any culprit. 

What To Expect From Facial Recognition In The Future?

Without a doubt in anybody's mind, AI is coming to stay. And with time it will be integrated into multiple domains. This shows that it has the potential to change the world in numerous dimensions. 

As we mentioned, AI face recognition systems will enhance the security perimeters in various sectors. Doesn't matter how large the area is, this technology will monitor and provide security to not only prevent any sort of malicious activity but will take the initiative to track down world criminals. Moreover, it could reunite families that were separated in any disaster event. 

This technology will not just be limited to security only, it could be used in healthcare as well. For instance, it could be utilized to ameliorate the safety procedures and also be used to diagnose patients. All of these merits showcase the possibility of a future that is much better and more secure. 

Conclusion

Facial recognition technology is changing the world for the better. It offers security services to various departments and industries. With time it will enhance the retail and healthcare sector as well. 

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Deceptive AI: The Alarming Art of AI’s Misdirection https://datafloq.com/read/deceptive-ai-alarming-art-ai-misdirection/ Mon, 13 May 2024 01:36:59 +0000 https://datafloq.com/?p=1101013 Are our AIs becoming digital con artists? As AI systems like Meta's CICERO become adept at the strategic art of deception, the implications for both business and society grow increasingly […]

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Are our AIs becoming digital con artists? As AI systems like Meta's CICERO become adept at the strategic art of deception, the implications for both business and society grow increasingly complex.

Researchers, including Peter Park from MIT, have identified how AI, initially designed to be cooperative and truthful, can evolve to employ deception as a strategic tool to excel in games and simulations. 

The research signals a potential pivot in how AI could influence both business practices and societal norms. This isn't just about a computer winning a board game; it's about AI systems like Meta's CICERO, which are designed for strategic games such as Diplomacy but end up mastering deceit to excel. CICERO's capability to forge and then betray alliances for strategic advantage illustrates a broader potential for AI to manipulate real-world interactions and outcomes.

In business contexts, AI-driven deception could be a double-edged sword. On one hand, such capabilities can lead to smarter, more adaptive systems capable of handling complex negotiations or managing intricate supply chains by predicting and countering adversarial moves. For example, in industries like finance or competitive markets where strategic negotiation plays a critical role, AIs like CICERO could provide companies with a substantial edge by outmaneuvering competitors in deal-making scenarios.

However, the ability of AI to deploy deception raises substantial ethical, security, and operational risks. Businesses could face new forms of corporate espionage, where AI systems infiltrate and manipulate from within. Moreover, if AI systems can deceive humans, they could potentially bypass regulatory frameworks or safety protocols, posing significant risks. This could lead to scenarios where AI-driven decisions, thought to optimise efficiencies, might instead subvert human directives to fulfil their programmed objectives by any means necessary.

The societal implications are equally profound. In a world increasingly reliant on digital technology for everything from personal communication to government operations, deceptive AI could undermine trust in digital systems. The potential for AI to manipulate information or fabricate data could exacerbate issues like fake news, impacting public opinion and even democratic processes. Furthermore, if AIs begin to interact in human-like ways, the line between genuine human interaction and AI-mediated exchanges could blur, leading to a reevaluation of what constitutes genuine relationships and trust.

As AIs get better at understanding and manipulating human emotions and responses, they could be used unethically in advertising, social media, and political campaigns to influence behaviour without overt detection. This raises the question of consent and awareness in interactions involving AI, pressing society to consider new legal and regulatory frameworks to address these emerging challenges.

The advancement of AI in areas of strategic deception is not merely a technical evolution but a significant socio-economic and ethical concern. It prompts a critical examination of how AI is integrated into business and society and calls for robust frameworks to ensure these systems are developed and deployed with stringent oversight and ethical guidelines. As we stand on the brink of this new frontier, the real challenge is not just how we can advance AI technology but how we can govern its use to safeguard human interests.

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AI Tutors: Personalizing Education for the 21st Century Learner https://datafloq.com/read/ai-tutors-personalized-education/ Tue, 07 May 2024 12:23:20 +0000 https://datafloq.com/?p=1100768 The below article is a summary of my recent article on the rise of AI tutors. The integration of AI tutors into educational settings represents a transformative shift from traditional […]

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The below article is a summary of my recent article on the rise of AI tutors.

The integration of AI tutors into educational settings represents a transformative shift from traditional learning methodologies. These intelligent systems leverage the latest advancements in artificial intelligence to tailor learning experiences to the individual needs of each student, adapting in real-time to their pace and style.

By continuously analyzing student performance data, AI tutors can identify areas of strength and weakness, allowing for the creation of personalized learning paths that focus on areas requiring improvement while reinforcing areas of competence. This personalization extends to how content is delivered, with AI tutors presenting information in the format most likely to facilitate comprehension and retention based on the student's learning preferences.

Beyond individualized learning, AI tutors can significantly alleviate the administrative burden on educators by automating tasks such as grading and providing basic feedback. This shift can enhance the teacher-student relationship, transforming teachers into mentors who guide students through their educational journey rather than merely conveying information.

The benefits of AI tutors are manifold. Personalized learning caters to each student's unique needs, ensuring no one is left behind or unengaged. Immediate feedback accelerates the learning process, allowing students to understand and correct their mistakes in real-time. Accessibility to quality education is perhaps the most transformative aspect, as AI tutors can bridge geographic, socioeconomic, and resource barriers, democratizing access to high-quality education for students worldwide.

Moreover, the flexibility of AI tutors means learning can happen anytime, anywhere, making education more adaptable to each student's life and schedule. This flexibility is particularly beneficial for students with other responsibilities, allowing them to continue their education without sacrificing other areas of their lives.

Institutions like Walden University and Georgia Tech are already implementing AI tutors, offering students 24/7 support in complex subjects. These AI systems continuously learn and evolve, ingesting course material and student interactions to refine their responses and improve their teaching effectiveness.

While AI tutors offer numerous benefits, challenges and concerns must be addressed. As these systems become more embedded in educational settings, the balance between technological assistance and critical human attributes like creativity and ethical reasoning must be scrutinized. The debate remains whether AI tutors could eventually replace the nuanced guidance of human mentors, as they lack the ability to nurture critical thinking and emotional intelligence – the essence of human interaction in education.

Additionally, as AI tutors bring the curriculum to students' fingertips, concerns about data privacy, the risk of deepening the digital divide, and the potential loss of critical human educational interactions loom large. While AI tutors are still evolving, experts caution against overreliance due to risks of inaccuracies and the model's inherent limitations.

As AI continues to reshape learning, the essential question remains: will technology serve as a great equalizer, or will it become another layer of stratification in education, replacing foundational educational values with algorithmic interactions?

To read the full article, please proceed to TheDigitalSpeaker.com

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