Machine Learning is part of the concept of artificial intelligence that studies ways for machines to perform tasks that would be performed by human beings. It is a program used in computers, formed by previously defined rules, that makes computers make decisions based on the data that were informed before. This artificial intelligence has transformed a company’s finances , which manage to solve risk management situations until the investment forecast.
Read also: 5 steps to set up your area’s budget
The machine learning is a very useful tool for decision making. It can, for example, based on a certain behavior, predict the sales of a product, and the variables that influence this demand. Some auditing companies have used it to detect fraud, since computers can capture a large amount of information, and process it much faster than the human brain.
Financial institutions also use machine learning for their businesses . For example, if they wanted to predict which of the customers is most likely to meet their obligations. With this tool, the company can use variables, income, age, dependents, credit restrictions, etc., and thus arrive at a suitable variable to be its future customer.
Through data analysis in real time, and efficient, since the process is all automated, machine learning provides more productivity, managers can better use this time and focus on other tasks that would not be possible by machines.
Reading tip: 4 Risk Analysis factors that every financial professional should know
The fraud prevention has also been prevented with machine learning. Every year, Brazilian companies suffer losses of more than 10 billion reais only with virtual fraud, and a good part of these problems occur when accounts are hacked. Machine learning applied to these accounts will allow apps to thwart security breaches by criminals. Algorithms are able to assess the probability that a transaction is fraudulent for example.
Algorithms can also learn in minutes and take on the role of financial investment analyst, identifying assets dynamically and quickly. This function can make work easier for all types of investors .
The main benefits of machine learning in a company’s finances
Automation and Control
It is possible to automate tasks that have historical data, so the tool can learn from rules that have already been defined.
Time and cost reduction
A computer, through these rules, can work much faster than the human brain. Thus reducing the time and cost of operating a given task.
KPI improvements
Based on the automations and rules , new functions can be added to the employees of a company , and thus improve their KPIS, since they will perform tasks that use human capacity, and can be evaluated in this way.
The learning machine has been of great value to the finances of a company, since the whole process would require much time and effort can be done through computers that have been set for this.
