The following is an excerpt from Bloomberg.com | June 22, 2016 |
The idea of computers outsmarting and replacing humans has existed in movies and books for decades. Fortunately, that hasn’t happened on a wide scale yet. But what has happened is the recent emergence of artificial intelligence concepts—specifically cognitive computing—which involve advanced technology platforms that can address complex situations that are characterized by ambiguity and uncertainty. Cognitive computing has begun to augment and empower business decisions right alongside human thought process and traditional analytics. In fact, the domain of risk management, lends itself particularly well to cognitive computing capabilities, as typical risk issues often include unlikely and/or ambiguous events.
Companies and public sector organizations have progressed in terms of using massive amounts of internal and external data to take a more preventative risk stance, says Samir Hans, a Deloitte Advisory principal in the Forensics & Investigations practice of Deloitte Transactions and Business Analytics LLP. However, traditional methods of analysis have become increasingly incapable of handling this data volume. Instead, cognitive capabilities — including data mining, machine learning and natural language processing — are supplanting traditional analytics and being applied against these massive data sets to help find indicators of known and unknown risks.
“Given the increases in computational processing power and corresponding decreases in the costs of data storage, artificial intelligence in the business world is fast becoming a reality,” Hans explains. “These artificial intelligence or cognitive-based technologies help computers interact, reason and learn like human beings.”
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