AI is used for a variety of purposes in the fintech industry. Often mixed with machine learning, a method of training AI, AI in fintech involves "intelligent" systems that automate or enable solutions for complex problems and processes, and/or uncover insights in data. Applications include Anti-Money Laundering (AML) processes, fraud checks, credit checks, decision support, risk assessments, and more. With great technology comes great responsibility and the application of AI and data collection in financial services is one that raises many questions in terms of management, security, and regulation. The European Union recently introduced rules that will begin to shape the way AI is used, with a particular focus on the financial services sector.

Artificial intelligence (AI) technology will have the biggest impact on fintech development over the next five years, according to a survey of 80 fintechs by Tribe Payments, which analysed the use of five emerging technologies: application programming interfaces (APIs), AI, blockchain, low code and edge computing. Alex Reddish, chief commercial officer at the firm, said the report offers insight into the technologies from those closest fintechs and suggests next steps for those that don't want to be left behind. The survey found that 67% of fintechs believe AI will be the emerging technology that has the biggest impact on the sector over the next five years. Daragh Morrissey, director of AI at Microsoft Worldwide Financial Services, said fintechs have the potential to keep leading on AI. "Some incumbents have admitted to being scared by the potential of fintechs, and they should be," he said. "Smaller companies have the advantage when it comes building sophisticated AI. Without legacy technology to deal with, fintechs simply don't have to revolutionise how they work to start implementing AI."