Benefits of Artificial Intelligence Implementation in the Financial Industry

Microsoft's research, titled *Future Ready Business: Assessing Asia-Pacific’s Growth with Artificial Intelligence (AI)*, states that the financial industry in Asia Pacific implementing artificial intelligence (AI) has seen improvements in five areas: customer engagement, competitiveness, innovation, margins, and business intelligence.

The highest improvement occurred in margins, which are estimated to have doubled, from 17% in 2019 to 35% in 2021. Furthermore, the report mentions that AI contributed to a 41% increase in competitiveness by 2023.

Haris Izmee, President Director of Microsoft Indonesia, notes that new players in the Indonesian financial industry have successfully implemented technology-based services, effectively reaching customers through artificial intelligence. This poses a challenge for established players to leverage data and artificial intelligence to enhance their competitiveness.

Moula, a startup in Australia, uses AI for real-time credit decision-making services. It also leverages Azure AI and machine learning to predict the likelihood of loan defaults. Similar applications are seen in Indonesia among fintech companies that provide online productive loans to the public.