“ FROM OUR PERSPECTIVE , VCS SHOULD BE INTERESTED IN SEEING HOW AI CAN BE LEVERAGED FOR DIFFERENT USE CASES ”
OLIVER RICHARDS PARTNER , MMC VENTURES the application of AI is not core to the potential success , such as direct-toconsumer insurance brands . AI should only be used when there is a clear prediction or optimisation benefit to be realised .”
Despite this , Richards points out that the capabilities driving the current ‘ third wave ’ of AI in industry , cannot be downplayed , and that by applying ML , fintechs can add value by automating processes , pricing and customer analytics .
“ The third wave of AI is based on the capabilities of another subset of AI , deep learning . Deep learning effectively works by recreating the mechanism of the brain in software and has unlocked significant new capabilities , particularly in the domains of vision and language such as autonomous vehicles and voice recognition systems in smartphones .”
Bartrum agrees , but goes on to say that the continuation of trends have been in motion for years . “ Rapid advances in cloud computing and falling costs making it cheaper to store vast amounts of data ; advances in AI / ML technology to process and interpret the data ; and the rise of opensource platforms such as TensorFlow from Google and DSSTNE from Amazon that reduce the time and effort to build and implement ML systems .”
He adds , “ These factors have combined to help companies and entrepreneurs tackle problems that were seemingly impossible to solve a decade ago , driving innovation and investment in the fintech and insurtech sectors .”