How does Artificial Intelligence Work Wonders for Online Businesses
Artificial Intelligence has totally changed the way enterprises carry out their operations. From remote customer onboarding to enhanced fraud prevention, AI has become increasingly popular in the market. Almost 37% of businesses incorporate artificial intelligence in meeting their daily needs, while the AI industry is expected to generate a revenue of $118 billion US dollars till 2025.
Businesses need to verify customer identity before associating ties with them, and the process needs to be secure and swift. Taking into account user satisfaction and overall turnaround time, AI provides remarkable results. Below are listed a few benefits of AI in online businesses:
Secure Customer Onboarding
Customer enrolment is an essential part of business operations since end-users are the driving force for any organization. Providing your clients with intuitive and easy-to-understand onboarding procedures draws in positive user engagement. Without taking significant measures for securing customer onboarding processes, enterprises are always on the risk of cybersecurity threats. This is important to prevent unauthorized identities from stealing sensitive user data.
Today, impersonation fraud and identity theft are taking over the internet by storm. This is when reliable customer verification becomes inevitable. By incorporating AI-based identity verification solutions, online businesses can prevent criminals from harming their customers by creating a safe and secure communication channel to verify them in real-time.
Reduced Business Costs
Managing operational expenses for online businesses is a big hassle without the presence of artificial intelligence. A good balance between the overall revenue and operating costs is essential. This is not possible unless customer satisfaction standards are met. Customers could be provided with effortless verification solutions which are offered by artificially intelligent systems.
Automating customer identification programs not only makes the job easy for the customers but also helps save manual labour costs spent on long and tedious verification procedures spanning over days. By incorporating AI models for improved customer assistance, an online business can reduce their operational costs.
Anti Money Laundering
Potential criminals are always in pursuit of laundering dirty money using illegitimate channels to carry out their illicit motives. According to Europol, a massive sum of almost 1.8 trillion Euros is accumulated in money laundering activities each year. When a business is exposed to financial crime, it is subject to various kinds of vulnerabilities since criminals gain access to the identity information of customers. This not only hurts the market reputation of the enterprise but also puts the identity information of thousands at risk.
With ingenious AI solutions, the productivity of a human workforce can be significantly improved. With artificial intelligence, traditional Anti Money Laundering (AML) practices are revamped. Artificial Intelligence helps organizations analyze large datasets and detect unusual patterns which may hinder customer satisfaction. This aids banking entities to better analyze illegal money trail and bigger transactions to take down money laundering. This reduces potential risks and helps accurately identify criminals.
Prevention of Insurance Fraud
The Federal Bureau of Investigation (FBI) states that there exist almost 7000 insurance organizations in the industry which accumulate more than premiums worth of $1 trillion US dollars yearly. Apart from the growing revenue, the insurance industry is a huge marketplace for fraudsters to conduct scams and illegal activities. Application fraud, which is most common in the industry, comprises new account openings. These accounts are created with the purpose of initiating fake insurance policies over the internet.
Online insurance fraud can be taken down using purpose-built intelligent solutions. By accurately identifying illegitimate brokers which conduct insurance scams, companies could reduce false-positive rates and improve verification procedures.
Enhanced Data Extraction
During onboarding, acquiring and processing customer data are the dilemmas organizations have to deal with. This includes identifying the user at the time of enrollment and saving it for future verification. Conventional manual data entry tasks are outdated and take a lot of time and effort. Even if a company employs traditional Optical Character Recognition (OCR) solutions, they have potential drawbacks such as faulty feature extraction and slower processing times. With AI-powered OCRs, end-user documents are accurately extracted, with better turnaround times, and the process becomes safe and secure.
To sum it all up, artificial intelligence has been a game-changer in revolutionizing online businesses by providing improved data extraction from customer documents, conducting secure customer onboarding and helps prevent insurance fraud and money laundering.