PART 1: CAN AI BE USED TO PREDICT BUSINESS ISSUES? - MYFINB

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PART 1: CAN AI BE USED TO PREDICT BUSINESS ISSUES? - MYFINB
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):

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PART 1: CAN AI BE USED TO PREDICT BUSINESS ISSUES? - MYFINB
Case #1

                                                                919
          Case #2

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Case #3

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             Case #4

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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

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PART 1: CAN AI BE USED TO PREDICT BUSINESS ISSUES? - MYFINB
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