PART 1: CAN AI BE USED TO PREDICT BUSINESS ISSUES? - MYFINB
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By m nazri, eng shi qi – theresa, michael chambers, william (bill) hu focus PART 1: CAN AI BE USED TO PREDICT BUSINESS ISSUES? W hen Amazon launched subprime housing bubble led to the computers themselves. Alexa or when Google 2008 worldwide economic crash. With the help of Silicon Valley, a 18 acquired Deepmind, the One of McKay’s main points in handful of companies have developed use cases that are emerging today outlining how Michael Burry, and a more intelligent tools designed to handle would have been unthought of by many. handful of other Wall Street outsiders, these problems. For example, Palantir, Today AI and bots are redefining how were able to predict the impending a counter-intelligence firm initially used users engage with devices and work in crisis is that they simply investigated by the military, has become a household amazing ways. the underlying data. name on Wall Street by using AI for The near real-time translation of As Ryan Gosling’s character narrates fraud prevention. languages, the capability of Alexa to in the film: “A few did what the rest IBM’s Watson, best known for being decipher the millions of accents all never thought to do… they looked.” a contestant on Jeopardy, is designed have underlying Machine Learning Unfortunately they were unable to to build AI-powered applications, capabilities. With new advancements inform (or convince) the thousands of including the financial industry. Palo emerging each day, technology has other investors, analysts, and regulators Alto-based Sensai uses “deep learning” come a long way. Artificial Intelligence dealing with these loans that the to read and analyze unstructured (AI) is touted as the next big thing, banking industry had built an economic data such as corporate documents, an inevitable game changer. There is house of cards. transcripts and social media to simplify more investment going into AI and Identifying the warning signs of the analyst workflow. voice assistance today than ever. The a potential crisis is not an easy task, Firms like these are accelerating the technology rests on deep learning and especially when banks and corporates, prevalence of AI in banks, particularly in pattern recognition. in particular, listed companies, are a few important areas. In Malaysia, we But can AI be used to predict the accumulating data at unprecedented have MyFinB that evaluates structured downfall of businesses and save the rates. and unstructured data and turn them “lives” of many? Can AI serve the Companies that recently worried into narrative insights with predictive interests of the business community about managing a petabyte of data will and prescriptive capabilities. and do greater good for society? soon face zettabytes of information In the film “The Big Short,” based being generated in annual statements, Five instances where MyFinB on the book by Michael Lewis, Adam AGM notes, monthly accounting successfully predicted financial McKay attempts the difficult task of transactions, contracts, emails, from actions and/or events at least one explaining exactly how the credit and the web, from voice and video, and from year before it occurred (excerpts): j u ly 2 0 1 8 / M A L AY S I A N B U S I N E S S Focus.indd 18 21/06/2018 1:35:23 ptg
Case #1 919 Case #2 M A L AY S I A N B U S I N E S S / j u ly 2 0 1 8 Focus.indd 19 21/06/2018 1:35:24 ptg
Case #3 20 Case #4 j u ly 2 0 1 8 / M A L AY S I A N B U S I N E S S Focus.indd 20 21/06/2018 1:35:25 ptg
Case #5 921 Strategic implication: For example, a product-centric power – and the more information we AI will predict future organization with a wide range of have, the more accurate predictions can financial results based on products would benefit from more- become based on historical patterns. trends and market data effective revenue forecasting. With over 50 billion devices expected The ability of AI to improve predictive A large multinational in a competitive, to be connected to the Internet by 2020, (what will happen) and prescriptive low-margin industry would benefit from the amount of data will only increase (the best course of action) financial more effective cash-flow forecasting, – bringing the promise of even more forecasting processes will change the whereas the impact would be lower in information to help predict some of the world of finance management. a smaller organisation in a high-margin unpredictable. Currently, many financial forecasting industry. Malaysian companies, big or small, and planning processes are manually Organisations should consider being need to ensure that they can always intensive and suffer from inherent early adopters or partnering with anticipate the future in a systematic, human biases, as predictive models may vendors like MyFinB, with a strong reliable fashion. Using AI technology be “tweaked” to generate favorable (or focus on use cases specific to their like MyFinB can help to manage risks expected) outcomes. company and industry. ahead of time. Cash-flow forecasting, revenue In future, we will see more AI forecasting, cost and expense planning, Conclusion successes where high-quality data are and balance-sheet planning are all areas Tarot cards, fortune cookies, and crystal available and rules are increasingly of predictive financial analytics that will balls. All promise a glimpse into the well-understood in terms of possible benefit from AI technologies, although future. But as we know, the unexpected operations and data. These will include the impact will vary by organization and is to be expected – somewhat. The rise areas of finance, online education, industry. of big data has brought unprecedented manufacturing and healthcare. mb M A L AY S I A N B U S I N E S S / j u ly 2 0 1 8 Focus.indd 21 21/06/2018 1:35:25 ptg
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