The integration of Artificial Intelligence (AI) into fintech solutions has produced significant shifts in the way organizations run their businesses. The automation of certain tasks enables an unprecedented level of efficiency and innovation, and FinTech solutions across the market have been using AI to place themselves as the best of the best. Although AI is not necessarily a new thing, this new wave of user centric AI has taken the digital world by storm, and has changed the sector for good. 

ERPs at the heart of FinTech

Fintech’s journey began with the digitalization of financial services, evolving from basic online banking services to complex financial management solutions. ERP systems are at the heart of FinTech solutions, and enable organizations to automate their processes and streamline their operations. ERP systems have transitioned from rudimentary inventory management software to sophisticated platforms that integrate all facets of a business. Cloud based ERP solutions can now offer CRM, project management, E-commerce, planning and budgeting, warehouse management, supply chain management and more. This improvement in the depth and breadth of features has set the stage for AI’s integration, offering opportunities to harness data analytics and automation in new and powerful ways.

A slow but steady integration of AI

Now many people may think AI is a brand new thing, but this isn’t the case. AI has actually been involved in Fintech solutions since the 80s. It has been used to enable predictive analytics for better decision-making, risk management through advanced algorithms, and personalized financial services tailored to individual customer needs. AI’s capability to process large volumes of data and extract actionable insights has revolutionized how financial services operate.

AI in ERP solutions

However, the new wave of easily accessible AI, such as chat GPT, is being further integrated into FinTech and ERP solutions. Oracle NetSuite ERP is rolling out a new AI feature, that is going to allow it’s users to automate activities such as writing collection letters, and producing context driven email responses. Evan Goldberg, Founder and EVP of Oracle NetSuite, said “We’ve been building AI into NetSuite for several years to help our customers be more productive and successful. Recent breakthroughs in AI create the opportunity for a quantum leap in doing more with less”. As Evan suggests, these advancements are going to significantly reduce the time it takes to accomplish certain activities, and will free up capacity for tasks that have a bigger impact on organizations. 

ERP powerhouse SAP are also integrating AI into their solution, with their new product “Rise with SAP”. They have used their extensive industry specific data and deep process knowledge to build a product that is going to help it’s customers to further streamline their processes and be rid of time-consuming, repetitive tasks. 

The dangers of AI

Despite its advantages, integrating AI into FinTech solutions, such as ERPs, is not without challenges. Concerns around data security and privacy are always a big one, given the sensitive nature of financial data. This is an area that FinTech solutions must double down on, as financial data and security is of the upmost importance to customers. 

There are also ethical considerations that come with AI, such as accessing data without consent. This is an area that will likely develop as time goes on, and it’s likely that tools will be created that will help with blocking all the different AI bots from accessing online content. Finally, the overall safety of AI is always an ongoing concern. Whether or not AI bots will become like humans, take over our world and keep us all captive is one thing. But there is a real fear by many that AI could become too intelligent and start rejecting commands, the consequences of which is yet to be known.  

Conclusion

Overall, the integration of AI into fintech, particularly ERP systems, is a game-changer for businesses. It offers unprecedented levels of efficiency, accuracy, and insights. As this technology continues to evolve, it will play a crucial role in shaping the future of financial services. Embracing AI in ERP systems is not just a step towards technological advancement but a stride towards redefining how businesses operate in the digital age.