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15/03/2023

To learn, reason and solve problems are some of the skills associated with humans. Today there are computer applications capable of performing such tasks through artificial intelligence. The rapid expansion of this technology brings about a series of opportunities in different fields. In the banking sector it can be used to improve customer service, optimise loan approval processes and prevent non-performing loans, among other applications. At the same time, it is important to be aware of the many challenges that artificial intelligence poses.

A few years ago, artificial intelligence (AI) might have seemed very futuristic. Nowadays it's common to find tools and applications that are based on AI algorithms in different areas of our everyday life and with different purposes: content generation (known as generative AI and employed in chatbots such as Microsoft's Chat GPT and Google's Bard); computers that play chess and are capable of beating humans; digital personal assistants, navigation assistants that tell you the best route and thousands of other examples.

In general, AI is the development of systems capable of learning, planning or resolving problems in a way similar to humans. For an electronic device or software to have artificial intelligence, it needs data and algorithms that are capable of making decisions. It can receive the former via the internet, big data applications, or by connecting directly to other devices to exchange information. The latter, meanwhile, are a series of instructions with which they are programmed in order to create behaviours or patterns based on the different data they receive.

The growth in artificial intelligence is being driven mainly by disruptive technology such as machine learning, deep learning, big data and quantum computing. What sets AI apart from a standard IT program is that it can improve its own processes autonomously. In other words, it learns from previous tasks, without the need for human intervention. This is known as machine learning.

Imagine you have a robot vacuum. It is programmed to go around your house every day. It follows a map that it generated and stored using its integrated navigation system on day one (previous tasks). However, a few weeks later you decide to move some furniture around. The robot starts bumping into them, prompting it to automatically activate its navigation system to update the map (it makes a decision using the data received). That way since it has designed a new route it won't bump into the furniture next time.

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What is artificial intelligence and how does it affect banking? - Santander