Fraud Detection: 5 Tips to Successfully Implement Artificial Intelligence
Artificial intelligence is no longer a fiction. It surely will become a large part of human life in future. The automatic vehicle, virtual assistant, healthcare, banking, almost every aspect will take advantage of artificial intelligence, including compliance field.
For example, a financial institution can manage hundreds of data to overcome or even prevent fraud from occurring by implementing artificial intelligence. Through deep-learning machine, complex big data can be useful to prevent fraud. It is able to analyze the data in real time and recognize the signs of fraud that human analysts may miss, thereby increasing the chances of fraud prevention.
However, there are at least five points that a company should take into consideration when thinking about successfully implementing artificial intelligence.
1. Don’t get intimidated. People might think the term ‘artificial intelligence’ represent something complex and unattainable. In its simplest form, artificial intelligence is an automated process that streamlines monotonous work.
2. Don’t put all your faith. Artificial intelligence should be seen as ‘assistant’ for a human. Despite huge advancement in analytical algorithms, machines should not be entirely autonomous in decision making – particularly in financial service. Human intelligence (wisdom and insight) is still required in decision making.
3. Don’t pursue artificial intelligence solely for cost efficiency. Automation can indeed cut operational cost. However, don’t pursue it solely for cost efficiency. Analysts, researchers, and scientists are not replaceable. Their mundane activities can be automated, so that they can spend their time on more valuable things, such as research on new risks or any related innovation.
4. Don’t sacrifice transparency for efficiency. Accountability should be a top priority. A decision should be transparent and accountable. The percept should be a guide for the development and production life of a machine learning system. Sometimes transparency requires extra costs. Don’t inflict cost both for company and clients by ignoring accountability of a decision just because of efficiency.
5. Don’t pursue artificial intelligence just for the sake of it. Sooner or later, fraud and risk management professionals will get asked at the water cooler,“Hey, are we doing AI? This other firm is doing it. Why aren’t we?” Do not pursue it just for the sake of it. There are many benefits of artificial intelligence, for example, helping the professional in detecting fraud behaviors that may not be detected by traditional approaches. Start with the idea of ‘what benefit artificial intelligence can bring to our business’.