finance

Neural networks have emerged as a transformative force across various sectors, revolutionizing industries such as healthcare, finance, and automotive technology.

Inspired by the human brain, artificial neural networks (ANNs) leverage bio-inspired computational models to solve complex problems and perform tasks previously exclusive to human intelligence.

The effectiveness of neural networks largely hinges on the quality and quantity of data used for training, underlining the significance of robust datasets in achieving high-performing models.

Ongoing research and development signal a future where neural network applications could expand even further, potentially uncovering new ways to address global challenges and drive progress in the digital age.

7 Industry Applications of Neural Networks

In this blog, we will explore the current applications of neural networks across 7 different industries, exploring the different enhanced aspects of each.

Customer Support

Chat Systems

They have transformed customer support through chat systems. By analyzing customer queries and past conversations, neural networks understand the context and provide relevant and accurate responses.

This technology, known as natural language processing (NLP), enables chatbots to interact with customers in a conversational manner, providing instant and personalized support.

Continuous Improvement

These systems learn from extensive datasets of customer interactions, empowering businesses to address inquiries efficiently, from basic FAQs to complex troubleshooting. Companies like Talla use neural networks to enhance their AI-driven customer support solutions.

Proactive Support

Neural networks anticipate potential issues based on historical interactions, improving the overall customer experience and reducing churn rates. This proactive approach ensures that businesses can address problems before they escalate, maintaining customer satisfaction.

Read more to explore the Basics of Neural Networks

Telecommunication

Network Operations

Neural networks boost telecommunications performance, reliability, and service offerings by managing and controlling network operations. They also power intelligent customer service solutions like voice recognition systems.

Data Compression and Optimization

Neural networks optimize network functionality by compressing data for efficient transmission and acting as equalizers for clear signals. This improves communication experiences for users and ensures optimal network performance even under heavy load conditions.

Enhanced Communication

These network architectures enable real-time translation of spoken languages. For example, Google Translate uses neural networks to provide accurate translations instantly.

This technology excels at pattern recognition tasks like facial recognition, speech recognition, and handwriting recognition, making communication seamless across different languages and regions.

Learn more about the 5 Main Types of Neural Networks

Healthcare

Medical Diagnosis

These networks drive advancements in medical diagnosis and treatment, such as skin cancer detection. Advanced algorithms can distinguish tissue growth patterns, enabling early and accurate detection of skin cancer.

For instance, SkinVision, an app that uses neural networks for skin cancer detection, has a specificity of 80% and a sensitivity of 94%, which is higher than most dermatologists.

Personalized Medicine

They analyze genetic information and patient data to forecast treatment responses, enhancing treatment effectiveness and minimizing adverse effects. IBM Watson is an example that uses neural networks to analyze cancer patient data and suggest personalized treatment plans, tailoring interventions to individual patient needs.

Medical Imaging

Neural networks analyze data from MRI and CT scans to identify abnormalities like tumors with high precision, speeding up diagnosis and treatment planning. This capability reduces the time required for medical evaluations and increases the accuracy of diagnoses.

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Drug Discovery

Neural networks predict interactions between chemical compounds and biological targets, reducing the time and costs associated with bringing new drugs to market. This accelerates the development of new treatments and ensures that they are both effective and safe.

Finance

Stock Market Prediction

These deep-learning architectures analyze historical stock data to forecast market trends, aiding investors in making informed decisions. Hedge funds use neural networks to predict stock performance and optimize investment strategies.

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Fraud Detection

They scrutinize transaction data in real-time to flag suspicious activities, safeguarding financial institutions from potential losses. Companies like MasterCard and PayPal use neural networks to detect and prevent fraudulent transactions.

Risk Assessment

Neural networks evaluate factors such as credit history and income levels to predict the likelihood of default, helping lenders make sound loan approval decisions. This capability ensures that financial institutions can manage risk effectively while providing services to eligible customers.

Automotive

Autonomous Vehicles

The automotive industry harnesses these networks in autonomous vehicles and self-driving cars. These networks interpret sensor data to make real-time driving decisions, ensuring safe and efficient navigation. Tesla and Waymo are examples of companies using neural networks in autonomous driving technologies.

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Traffic Management

Neural networks help manage traffic and prevent accidents by predicting congestion, optimizing signal timings, and providing real-time hazard information. This leads to smoother traffic flow and reduces the likelihood of traffic-related incidents.

Vehicle Maintenance

Neural networks predict mechanical failures before they occur, facilitating timely repairs and prolonging vehicle lifespan. This proactive approach helps manufacturers like BMW maintain vehicle reliability and performance.

Aerospace

Fault Detection

These networks detect faults in aircraft components before they become problems, minimizing the risk of in-flight failures. This enhances the safety and reliability of air travel by ensuring that potential issues are addressed promptly.

Autopilot Systems

They also enhance autopilot systems by constantly learning and adapting, contributing to smoother and more efficient autopiloting. This reduces the workload on human pilots and improves flight stability and safety.

Flight Path Optimization

Neural networks simulate various flight paths, allowing engineers to test and optimize routes for maximum safety and fuel efficiency. This capability helps in planning efficient flight operations and reducing operational costs.

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Manufacturing

Process Optimization

These networks design new chemicals, optimize production processes, and predict the quality of finished products. This leads to better product design and fewer defects. Companies like General Electric use neural networks to enhance their manufacturing processes.

Predictive Maintenance

They can also identify potential equipment problems before they cause costly downtime, allowing for proactive maintenance and saving time and money. This application is used by companies like Unilever to maintain operational efficiency.

Quality Inspection

They monitor production in real-time, ensuring consistent quality. They can even inspect visual aspects like welds, freeing up human workers for more complex tasks. This technology is widely used in the automotive and electronics industries.

What are the Future Applications of Neural Networks?

Integration with AI and Robotics

Combining neural networks with AI and robotics creates advanced autonomous systems capable of performing intricate tasks with human-like intelligence. This integration enhances productivity by allowing robots to adapt to new situations and learn from their environment.

Such systems can perform complex operations in manufacturing, healthcare, and defense, significantly improving efficiency and accuracy.

Also know about 8 industries undergoing Robotics revolution

Virtual Reality

Integration with virtual reality (VR) technologies fosters more immersive and interactive experiences in fields such as entertainment and education. By leveraging neural networks, VR systems can create realistic simulations and responsive environments, providing users with a deeper sense of presence.

This technology is also being used in professional training programs to simulate real-world scenarios, enhancing learning outcomes.

Environmental Monitoring

These networks analyze data from sensors and satellites to predict natural disasters, monitor deforestation, and track climate change patterns. These systems aid in mitigating environmental impacts and preserving ecosystems by providing accurate and timely information to decision-makers.

As neural networks continue to expand into new domains, they offer innovative solutions to pressing challenges, shaping the future and creating new opportunities for growth.

For AI in finance, LLMs contribute by automating mundane tasks, improving efficiency, and aiding decision-making processes. These models can analyze bank data, interpret complex financial regulations, and even generate reports or summaries from large datasets.

Learn how Generative AI is shaping the future of finance.

They offer the promise of cutting coding time by as much as fifty percent, which is a boon for developing financial software solutions. Furthermore, LLMs are aiding in creating more personalized customer experiences and providing more accurate financial advice, which is particularly important in an industry that thrives on trust and personalized service.

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As the financial sector continues to integrate AI, LLMs stand out as a transformative force, driving innovation, efficiency, and improved service delivery.

Generative AI’s Impact on Tax and Accounting 

Finance, tax, and accounting have always been fields where accuracy and compliance are non-negotiable. In recent times, however, these industries have been witnessing a remarkable transformation thanks to the emergence of generative AI.

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Leading the charge are the “Big Four” accounting firms. PwC, for instance, is investing $1 billion to ramp up its AI capabilities, while Deloitte has taken the leap by establishing an AI research center. Their goal? To seamlessly integrate AI into their services and support clients’ evolving needs.

But what does generative AI bring to the table? Well, it’s not just about automating everyday tasks; it’s about redefining how the industry operates. With regulations becoming increasingly stringent, AI is stepping up to ensure that transparency, accurate financial reporting, and industry-specific compliance are met. 

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The Role of Generative AI in Accounting Innovation

One of the most remarkable aspects of generative AI is its ability to create synthetic data. Imagine dealing with situations where data is scarce or highly confidential. It’s like having an expert at your disposal who can generate authentic financial statements, invoices, and expense reports. However, with great power comes great responsibility.

Understand the Generative AI Roadmap

While some generative AI tools, like ChatGPT, are accessible to the public, it’s imperative to approach their integration with caution. Strong data governance and ethical considerations are crucial to ensuring data integrity, eliminating biases, and adhering to data protection regulations. 

On this verge, the finance and accounting world also faces a workforce challenge. Deloitte reports that 82% of hiring managers in finance and accounting departments are struggling to retain their talented professionals.

Generative AI, including advanced machine learning models, is transforming the finance and accounting sectors by enhancing data analysis and providing deeper insights for strategic decision-making.

Understand the Ethics and Societal Impact of Generative AI and trends

Real-world Applications of AI Tools in Finance

Vic.ai

Vic.ai transforms the accounting landscape by employing artificial intelligence to automate intricate accounting processes. By analyzing historical accounting data, Vic.ai enables firms to automate invoice processing and financial planning.

A real-life application of Vic.ai can be found in companies that have utilized the platform to reduce manual invoice processing by tens of thousands of hours, significantly increasing operational efficiency and reducing human error​.

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Scribe

Scribe serves as an indispensable tool in the financial sector for creating thorough documentation. For instance, during financial audits, Scribe can be used to automatically generate step-by-step guides and reports, ensuring consistent and comprehensive records that comply with regulatory standards.

Tipalti

Tipalti’s platform revolutionizes the accounts payable process by using AI to streamline invoice processing and supplier onboarding.

Companies like Twitter have adopted Tipalti to automate their global B2B payments, thereby reducing friction in supplier payments and enhancing financial operations.

FlyFin & Monarch Money

FlyFin and Monarch Money leverage AI to aid individuals and businesses in tax compliance and personal finance tracking.

FlyFin, for example, uses machine learning to identify tax deductions automatically, while Monarch Money provides AI-driven financial insights to assist users in making informed financial decisions.

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Docyt, BotKeeper, and SMACC

Docyt, BotKeeper, and SMACC are at the forefront of accounting automation. These platforms utilize AI to perform tasks ranging from bookkeeping to financial analysis.

An example includes BotKeeper’s ability to process and categorize financial data, thus providing accountants with real-time insights and freeing them to tackle more strategic, high-level financial planning and analysis.

These AI tools exemplify the significant strides being made in automating and optimizing financial tasks, enabling a focus shift toward value-added activities and strategic decision-making within the financial sector

Transform the Industry using AI in Finance

In conclusion, generative AI is reshaping the way we approach financial operations. Automation is streamlining tedious, repetitive tasks, freeing up professionals to focus on strategic endeavors like financial analysis, forecasting, and decision-making.

Explore Top 8 Data Science Use Cases in the Finance Industry

Generative AI promises improved accuracy, efficiency, and compliance, making the future of finance brighter than ever.  

Over the past few years, a shift has shifted from Natural Language Processing (NLP) to the emergence of Large Language Models (LLMs). This evolution is fueled by the exponential expansion of available data and the successful implementation of the Transformer architecture.

Transformers, a type of Deep Learning model, have played a crucial role in the rise of LLMs. The flexibility they offer has led to the idea of LLM finance, healthcare, e-commerce, and much more.

Significance of Large Language Models

Applications of LLMs in the Finance Industry

Applications of Large Language Models (LLMs) in the finance industry have gained significant traction in recent years. LLMs, such as GPT-4, BERT, RoBERTa, and specialized models like BloombergGPT, have demonstrated their potential to revolutionize various aspects of the fintech sector.

These cutting-edge technologies offer several benefits and opportunities for both businesses and individuals within the finance industry.

How Large Language Models Can Automate Financial Services?

Large language models have the potential to automate various financial services, including customer support and financial planning. These models, such as GPT (Generative Pre-trained Transformer), have been developed specifically for the financial services industry to accelerate digital transformation and improve competitiveness.

Read about —> How LLMs (Large Language Models) technology is making chatbots smarter?

One example of a large language model designed for banking is SambaNova GPT Banking.

This solution aims to address the deep learning deployment gap in the banking sector by jump-starting banks’ deep learning language capabilities in a matter of weeks, rather than years [1]. By subscribing to GPT Banking, banks can leverage the technology to perform various tasks:

1. Sentiment Analysis:

GPT Banking can scan social media, press, and blogs to understand market, investor, and stakeholder sentiment.

2. Entity Recognition:

It reduces human error by classifying documents and minimizing manual and repetitive work.

3. Language Generation:

The model can process, transcribe, and prioritize claims, extract necessary information, and create documents to enhance customer satisfaction.

4. Language Translation:

GPT Banking enables language translation to expand the customer base. The deployment of large language models like GPT Banking offers several benefits to financial institutions:

5. Efficiency and Time-saving:

By automating routine tasks, these models can enhance efficiency and productivity for financial service providers. AI-powered assistants can handle activities such as scheduling appointments, answering frequently asked questions, and providing essential financial advice, allowing human professionals to focus on more strategic and value-added tasks.

6. Personalized Customer Experience:

Large language models can provide instant and personalized responses to customer queries, enabling financial advisors to deliver real-time information and tailor advice to individual clients. This enhances the overall client experience and satisfaction.

7. Competitive Advantage:

Embracing AI technologies like large language models can give financial institutions a competitive edge. Early adopters can differentiate themselves by leveraging the power of AI to enhance their client experience, improve efficiency, and stay ahead of their competitors in the rapidly evolving financial industry.

Upscaling Financial Sector with LLM Finance

It’s worth noting that large language models can handle natural language processing tasks in diverse domains, and LLMs in the finance sector, can be used for applications like robo-advising, algorithmic trading, and low-code development.

These models leverage vast amounts of training data to simulate human-like understanding and generate relevant responses, enabling sophisticated interactions between financial advisors and clients.

Overall, large language models have the potential to significantly streamline financial services by automating tasks, improving efficiency, enhancing customer experience, and providing a competitive edge to financial institutions.