# There’s nothing artificial about the role of AI and data in the finance industry 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-17
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Unlocking the Power of Unstructured Data with AI in the
Meta Description: Discover how AI technology can break down data siloes, save money, and help organisations make informed decisions based on unstructured data. Find out more!
URL: https://financedigest.com/theres-nothing-artificial-about-the-role-of-ai-and-data-in-the-finance-industryhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/artifical-intelligence-1736814572240-compressed.jpeg)

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/jon-horden-450x538-1736814572203-compressed.jpg)

_By_ **_Jon Horden,_** _CEO, iKVA_

[Global data creation is projected to increase to more than 180 zettabytes by 2025](https://www.statista.com/statistics/871513/worldwide-data-created/) – equivalent to 23 terabytes of data for every person alive today.

In the [commercial world](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns"), organisations have seen a huge increase in the use of email, video chat, messenger services and other non-traditional channels for dispensing information, which is not readily accessible for collation and indexing. [Between 80% to 90% of data generated and collected by organisations is unstructured](https://mitsloan.mit.edu/ideas-made-to-matter/tapping-power-unstructured-data), and its volumes are growing rapidly, much faster than the rate of growth for structured databases, yet unstructured data stores contain a wealth of information that can be used to guide decision-making.

The [financial industry has never been short of data](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") but, until recently, much of the information generated was too complex to be meaningful and the inability to connect data across organisational and departmental siloes was a major challenge for businesses operating in the sector.

With tougher economic conditions, the ongoing energy crisis, and a continued focus on developing sustainable and environmentally friendly business practices, [Artificial Intelligence](https://www.financedigest.com/artificial-intelligence-in-banking-robo-advisors-and-beyond.html "Artificial Intelligence in Banking – Robo Advisors and beyond") (AI) and Machine Learning (ML) will play an increasingly important role in how the financial industry develops.

**Breaking down data siloes**

The trend for hybrid and [remote working](https://www.financedigest.com/shoring-up-cyber-defences-in-the-remote-working-era.html "Shoring up cyber defences in the remote working era"), accelerated by the pandemic, has resulted in senior leaders and decision-makers using MS Teams, Zoom and other platforms to communicate, hold meetings, and make decisions. Accessing [knowledge created in MS Teams](https://www.financedigest.com/what-skills-and-areas-of-knowledge-should-finance-teams-develop-during-2023.html "What Skills and Areas of Knowledge Should Finance Teams Develop During 2023? "), for example, is challenging, especially since one meeting can cover multiple topics.  All the tools used – iManage, email, MS Teams, Sharepoint – also have different search interfaces that require multiple and repeated searches to find information.

Data classification has historically relied on labour-intensive, costly methods of indexing to create retrieval systems. Most current systems rely on Boolean searching, which enables users to combine keywords and modifiers to retrieve relevant information, but these often yield irrelevant [results as there are large search](https://www.financedigest.com/swiss-insurance-company-helvetia-uses-squirro-to-deliver-better-search-results-to-its-five-million-customers.html "Swiss insurance company Helvetia uses Squirro to deliver better search results to its five million customers") parameters combined with a lack of meaningful context.

AI technology can overcome this by indexing and segmenting the knowledge created and allowing it to be discoverable, providing more accurate results, increasing [business compliance, and helping to reduce business risk](https://www.financedigest.com/aon-assists-freddie-mac-to-reach-5bn-risk-transfer-milestone-for-u-s-mortgage-credit-business.html "AON ASSISTS FREDDIE MAC TO REACH BN RISK TRANSFER MILESTONE FOR U.S. MORTGAGE CREDIT BUSINESS"). So, inevitably, there will be an increase in the number of [organisations integrating AI-enabled data](https://www.financedigest.com/auditing-in-cyber-how-organisations-can-keep-track-of-their-data.html "AUDITING IN CYBER: HOW ORGANISATIONS CAN KEEP TRACK OF THEIR DATA") discovery solutions into their workflows to enable employees to quickly and easily discover important insights to improve business decision-making.

**[Saving money](https://www.financedigest.com/6-tips-to-save-money-on-your-next-used-car-purchase.html "6 Tips to Save Money on Your Next Used Car Purchase") and the environment**

[Around 90% of the unstructured data generated by a company is never analysed](https://www.forbes.com/sites/marymeehan/2016/12/08/where-data-goes-to-die-big-data-still-holds-answers-but-theyre-not-where-youre-looking-for-them/?sh=758e93a65896) and may be classified as ‘dark data’; common examples of dark data include old versions of documents, analytics reports, and transaction histories. Dark [data is hidden within an organization’s internal](https://www.financedigest.com/the-financial-sector-must-act-to-tackle-internal-data-security.html "THE FINANCIAL SECTOR MUST ACT TO TACKLE INTERNAL DATA SECURITY") networks and represents a significant volume of knowledge that could be harnessed to provide high-value results. With the growing popularity of [cloud storage](https://www.financedigest.com/onkho-announces-no-cost-cloud-storage-for-accountants-and-bookkeepers.html "Onkho Announces No-cost Cloud Storage for Accountants and Bookkeepers  "), it is easy to continue to generate and store data that is then disregarded.

However, the [cost of storing this unused data](https://www.financedigest.com/durham-county-council-reduces-data-log-analysis-costs-by-50-with-real-time-analysis-and-security-tool.html "Durham County Council reduces data log analysis costs by 50% with real-time analysis and security tool") is immense – both environmentally and financially. Storing [data in vast server firms](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") uses a tremendous amount of power and energy, contributing to excess carbon dioxide (CO2) emissions. It has been estimated that [6.4m tonnes of CO2](https://www.veritas.com/news-releases/2020-04-21-veritas-technologies-projects-dark-data-to-waste-up-to-6-4-m-tons-of-carbon-dioxide-this-year) were released into the atmosphere in 2020 to power the storage of dark data, producing more carbon dioxide than 80 different countries do individually. Using AI and ML technology to discover and categorise available [data for analysis](https://www.financedigest.com/trendrating-1-3-delivers-faster-data-analysis-and-enhanced-risk-control-tools.html "Trendrating 1.3 delivers faster data analysis and enhanced risk control tools") will enable organisations to retain what is necessary, provide more visibility of the knowledge within the company, and reduce the need for energy-intensive storage systems. By reducing the amount of unused data being stored, an [organisation can reduce the amount of carbon it is generating for data](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") storage.

Managing [data to reduce excessive energy consumption will become a moral imperative for businesses across the globe and more firms will take steps](https://www.financedigest.com/10-steps-to-stop-lateral-movement-in-data-breaches.html "10 Steps to Stop Lateral Movement in Data Breaches") to implement solutions to reduce emissions and improve operational sustainability.

In addition to the environmental benefit, there is a clear [financial value to reducing the amount of data](https://www.financedigest.com/big-data-analytics-fraud-prevention-in-the-financial-sector.html "BIG DATA, ANALYTICS & FRAUD PREVENTION IN THE FINANCIAL SECTOR") being stored by a business – the more energy required to power storage systems, the higher the electricity bill. Navigating an evolving financial landscape, and weathering tougher financial conditions, will incentivise businesses to implement AI-enabled [data discovery tools for a three-fold financial benefit:](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") decreasing energy costs, reducing business risk by unlocking insight from unused data, and improving operational efficiencies.

**[Increasing human](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") understanding**

The volume of knowledge being generated and stored as unstructured dark [data is beyond](https://www.financedigest.com/why-finance-teams-need-to-go-beyond-numbers-to-an-active-relationship-with-data.html "Why finance teams need to go beyond numbers to an active relationship with data ") human capabilities to digest and discover. With the global economy facing recession, it is clear that AI technologies can help organisations to drive cost and operational efficiencies that will help their businesses to [weather the economic](https://www.financedigest.com/how-digital-commerce-merchants-can-weather-the-economic-storm.html "How Digital Commerce Merchants Can Weather the Economic Storm") downturn.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---