Module 1

What is AI? Applications of AI: -

1.​ Artificial intelligence (AI) is a branch of computer science concerned with building smart
machines/computers/devices to simulate human intelligence, to think like humans and mimic
their actions. Artificial Intelligence is a branch of science which deals with helping machines
find solutions to complex problems in a more human-like fashion.
2.​ Intelligence is a property of mind that encompasses many related mental abilities, such as the
capabilities to think, reason, plan, learn and understand to solve problems.
3.​ Some of the applications are given below:
a. Business: Financial strategies, give advice
b. Engineering: check design, offer suggestions to create new product
c. Manufacturing: Assembly, inspection & maintenance
d. Mining: used when conditions are dangerous
e. Hospital: monitoring, diagnosing & prescribing
f. Education: In teaching
g. Household: Advice on cooking, shopping etc.
h. Farming: prune trees & selectively harvest mixed crops.

Application of AI in Marketing:
1.​ Improving the return on investment: Payment process is quicker because of high-level image
recognition. Better decision-making algorithms are provided on the basis of collected data which is
based on patterns, profiles, search cycles and behaviors leading to better database and design.
2.​ Predicting the sales: The digital marketing trends are implemented when AI predicts the future
trends of the market. The fluctuating market can cause change in the way the business works.
3.​ Effortless Search Sessions: The uses current sessions work well but can be quite perplexing. With
AI working on digital marketing, search engines and sessions get more efficient because they track
user’s patterns, profiles, search cycles and behaviors which help in predicting future behavior and
decisions which could lead to finding accurate and better keywords.
4.​ Delivering to the right target audience gets easy: A brands importance is increased when it is
delivered to the right people. AI-based digital marketing helps to achieve just that. It helps to get
the best target audience for the brand by finding people on the basis of interests, demography and
other aspects.
5.​ Improvement in advertising: AI-based marketing create advertisement according to the audience’s
choice and interest. AI designed for email marketing includes optimal, and phrases. Supply Chain
Optimization by Wal-Mart, forecasting price trends by hopper and staff retention predictive analysis
by IBM.

Application of AI in Finance:
1.​ Fraud Detection and Management: AI helps in tracking customer’s spending usage which helps
decrease fraud by figuring any odd behavior that may have taken place such as using a card in one
part of the country and within a few hours using it in some other part or withdrawing an unusual
amount of money.
2.​ Assessment of risks: In any business a person always wants to know what the risks that are going
to be involved are. AI helps in gaining experience from past data. Since it is data driven and data
dependent it helps in understanding the loan repayment habits of a customer, the number of loans
taken at what point in time, number of cards etc. which can be used to find a reasonable interest
rate for a large number of people.
3.​ Financial Advisory Services: AI based robots work for single down payments at a time when people
look forward to reduced commission on investments. Bionic advisory combines both human and AI
calculations to provide efficient options as opposed to what they individually provide. It also helps
in assisting in financial decision-making.
4.​ Trading and investments depend on how much insight one has into the [Link] figure out past
patterns and on the basis of that it predicts the future patterns. It can also cater to individual needs
by knowing each person’s wants and on the basis of that AI assists in making decisions on when to
buy, keep and sell stock.
5.​ Managing Finance: AI based wallet has developed on PFM (personal financial management). Wallet
helps one make smart decisions while spending money by giving data on the person’s spending
graph.

Application of AI in Healthcare:
1.​ Managing Medical Records and massive amounts of data: with the help of AI which help
researchers locate areas of focus for their own research. It could help find relevant insights by
 compiling and analyzing information. Data management is a broadly used application of AI and
digital automation. It gathers, stores and traces data to give faster and more consistent access.
2.​ Virtual nurses: In AI the patient’s conditions are monitored with the help of nurse bots or virtual
nurses like Molly which helps monitor patient conditions and investigate treatments while on a
doctor [Link]-based drug discovery software like atom wise uses the Deep Learning technique
which creates medicine for life-threatening diseases such as Ebola by scanning through prevailing
medication which could end the disease.
3.​ Doing habitual Jobs: It is used in oncology to help detect abnormalities in X-rays and MRIs. In
genomics complex processing is performed. Customized treatment is provided for every patient. It
helps one obey their medication and encourages recovery by a motivational voice for fitness
activities and healthy habits. Cardiology and radiology require a massive amount of data to be
analyzed which can be time consuming.
4.​ Healthcare bots: An AI application helps the patients with their requests, medication, billing,
scheduling and other clinical requests. They offer 24/7 assistance for primary requests, develop
customer service and reduce the administrative costs for hospitals.
5.​ Personal health virtual assistants: They are extremely intelligent virtual assistants which when
combined with healthcare apps can be used to deliver medication alerts, patient education topics
and human-like interactions to get insight into a patient's current mental state. They have an
incredible impact on monitoring and assisting patients.

Application of AI in Banking:
1.​ Customer service/engagement (Chatbot): Chatbots deliver a very high ROI in cost savings, making
them one of the most commonly used applications of AI across industries. Chatbots can effectively
tackle most commonly accessed tasks, such as balance inquiry, accessing mini statements, fund
transfers, etc. This helps reduce the load from other channels such as contact centers, internet
banking, etc.
2.​ Robo Advice: Automated advice is one of the most controversial topics in the financial services
space. A robo-advisor attempts to understand a customer’s financial health by analyzing data
shared by them, as well as their financial history. Based on this analysis and goals set by the
client, the robo-advisor will be able to give appropriate investment recommendations in a
particular product class, even as specific as a specific product or equity.
3.​ Cybersecurity: AI can significantly improve the effectiveness of cybersecurity systems by
leveraging data from previous threats and learning the patterns and indicators that might seem
unrelated to predict and prevent attacks. In addition to preventing external threats, AI can also
monitor internal threats or breaches and suggest corrective actions, resulting in the prevention of
data theft or abuse.
4.​ Credit Scoring / Direct Lending: AI is instrumental in helping alternate lenders determine the
creditworthiness of clients by analyzing data from a wide range of traditional and non-traditional
data sources. This helps lenders develop innovative lending systems backed by a robust credit
scoring model, even for those individuals or entities with limited credit history. Notable companies
include Affirm and Gini Machine.

AI Perspectives:
1.​ Systems that think like humans: Most of the time it is a black box where we are not clear about
our thought process. One has to know the functioning of the brain and its mechanism for
possessing information. Cognitive processes manipulate representation to build new
representations that are used to generate actions. Neural network is a computing model for
processing information similar to the brain.
2.​ Systems that act like humans: The overall behavior of the system should be human like. It could
be achieved by observation.
3.​ Systems that think rationally: Such systems rely on logic rather than humans to measure
correctness. For thinking rationally or logically, logic formulas and theories are used for
synthesizing outcomes. For example, given John is a human and all humans are mortal then one
can conclude logically that John is mortal. Not all intelligent behavior is mediated by logical
deliberation.
4.​ Systems that act rationally: Rational behavior means doing the right thing. Even if the method is
illogical, the observed behavior must be rational.