Artificial Intelligence (AI) and Its Application on Banking Sector in India

Artificial Intelligence (A.I.) is a multidisciplinary field whose goal is to automate activities that presently require human intelligence. Recent successes in A.I. include computerized medical diagnosticians and systems that automatically customize hardware to particular user requirements. The major problem areas addressed in A.I. can be summarized as Perception, Manipulation, Reasoning, Communication, and Learning. Perception is concerned with building models of the physical world from sensory input (visual, audio, etc.). Manipulation is concerned with articulating appendages (e.g., mechanical arms, locomotion devices) in order to effect a desired state in the physical world. Reasoning is concerned with higher level cognitive functions such as planning, drawing inferential conclusions from a world model, diagnosing, designing, etc. Communication treats the problem understanding and conveying information through the use of language. Finally, Learning treats the problem of automatically improving system performance over time based on the system’s experience. Artificial Intelligence (AI) pertains to computer programs that can execute complicated tasks that were previously limited to human capabilities, like problem-solving, reasoning, and decision-making. Today, the word “AI” refers to a broad range of technologies that enable many of the products and services we use on a daily basis, such as chat bots that offer real-time customer care and applications that suggest TV series. Artificial intelligence strengthens banking and financial institution. Because AI helps banks to process large amount of data and combat fraudulent transactions. The purpose of the paper is to study the fundamental technologies in AI and areas and application where AI technology is being used by banks and to study the opportunities and challenges of Artificial Intelligence.