5.1. The promise of ML¶
Machine learning can generate solutions to problems at scales that are cost-prohibitive otherwise. For example, the earliest (and ongoing) waves of ML in the finance space includes
Robo-advising (Acorns, Betterment, Wealthfront, etc.)
Manage risk (loans and insurance) to reduce write-offs and lower costs for consumers
Prevent and detect fraud (external and internal)
Investment choices - stocks, real estate (where to put factories, banks, etc)
Improve advertising offers to credit customers
Accenture thinks AI will add $140B of value to financial service firms alone via cost and productivity savings by 2025.
Don’t you want to capture a little of that?
This subsection is about setting the stage so we can start to apply our skills to the types of problems whose solutions will make big impacts.