While artificial intelligence (AI) has gained a lot of attention this year – boosted by Elon Musk and Mark Zuckerberg’s very public spat – the financial services industry has long used the technology in fraud detection.
However, the AI used in the past was simple, rule based and fairly rigid, a way of automating experts’ decision-making processes with an outcome in the form of a score – the higher the score, the greater the likelihood of fraud. Although the algorithms could be tweaked, they were incapable of learning or expanding their expertise.
