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The Rise of Augmented Intelligence: How Human Cognition is Joining Hands with AI for a Profound Impact

The Rise of Augmented Intelligence: How Human Cognition is Joining Hands with AI for a Profound Impact
July 10, 2017

Not long ago, the Russian Chess Grandmaster, Garry Kimovich Kasparov, began exploring the interplay between computers and humans. He designed a chess tournament only to find a surprising conclusion. Kasparov stated, “The winner was revealed to be not a grandmaster with a state-of-the-art computer, but a pair of amateur American chess players using three computers at the same time.”

It is a pertinent example of how combining the processing power and speed of a computer, coupled with human interpretive capabilities, can drive advanced results. This is the core of Augmented Intelligence, at its most fundamental form.

A study found that by 2035, AI could boost labor productivity by 40%. Consequently, banks have embraced the trend. For instance, in 2016 RBS (Royal Bank of Scotland) replaced some of its human employees with automated services.

What’s more, custodians are constantly looking for ways to streamline claims processing and prevent fraud. Subsequently, the FinTech sector has started leveraging the potential of Artificial Intelligence (AI) to enhance customer experience. However, the AI adoption in the wealth and asset management has been sporadic.

Approaching the Terrain – What are your key considerations?

The urge to remain competitive in the market compels banking firms to master and use complex AI tools, adapt contemporary forms of convergence via meaningful client relationships, and action a customer-centric framework.

The ideal way forward, is to create a convergence of technology with human skill and intelligence, synergized into a composite whole shaping- what is termed as an “Augmented Intelligence” system for insurers. Technology must harmonize the interplay between computing and human interpretation capabilities. Thus, allowing FS organizations to leverage data and make informed business decisions.

Technology must harmonize the interplay between computing and human interpretation capabilities.

Advances in processing speeds, Cloud Computing, Open-source software, and Big Data have assisted financial firms in using machine learning and cognitive computing to perform robust analysis of trends or patterns. Additionally, banks may use AI to spot nonstandard behavior patterns when auditing financial transactions. Companies can also leverage the technology to analyze and sift through several changes in taxation.

Altering the Form - Revolutionizing experience in FinTech

Presently, investments in FinTech are increasing at a rapid pace. Last year, financial institutions raised nearly $21 billion in investment, with $7 billion in January 2016 alone. Multiple banks are partnering with disruptive technologies to transform the economy and revolutionize customer experience via digital.

As banks start rolling out the notion of Augmented Intelligence in the advisory space, all contracts and assets will have a digital equivalent, managed in the cyberspace. Also, it will have a shared ledger capability that will allow secure portability of contracts and assets. Eventually, legacy models will move towards secure and distributed ledgers to operate in an augmented world.

Understanding the Synthesis – What’s inside Augmented Intelligence

Financial institutions are now primarily focusing on enriching customer experiences.

Over the next 10 years, nearly 70% of personal commerce will be supported by “agents” integrated in smartphones. Intelligence Amplification (IA) will use relevant techniques to integrate expertise into the knowledge base and resolve problems in a particular domain. Augmented Intelligence is the intersection of AI techniques and applications, where human intelligence and smart data converge into a unified framework.

However, there are some core differences between Augmented Intelligence and Artificial Intelligence. The following table presents the same:

Augmented Intelligence

Artificial Intelligence

Amplification of intelligence works along with human

Tries to replicate human intelligence

Oriented towards human expertise or intelligence and data patterns

Primary focus on robotics and hardware embedded intelligence

Accumulation of intelligence is progressive

Intelligence is pre-configured and update is required for adding intelligence

Suitable for dynamic business processes and high variability of data patterns

Application in man power automation area.

Envisioning the future - The “Augmented” roadmap

Banks need a strong Application Programming Interface (API) to deliver data across multiple service layers. In the near future, Augmented Intelligence will help embed a “bank” in interface and device experiences. Without a hint of friction, businesses will be able to reinforce products via a multi-channel architecture. Advice, credit, value stores, and payments: almost every function will be repackaged for the contextual world around us. As Brett King, one of Amazon’s best-selling authors, ideally puts it, “We shall be the last generation to use the terms mutual fund, overdraft, savings account, mortgage, and credit cards”.

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