TECHNOLOGY|FUTURE
Challenging Times In The Future with the Internet of Things and Artificial intelligence in Financial Transactions
Although Financial transactions are very fast with IoT and AI there are many challenges too
Importance Of IoT and AI in financial transactions
Do you make any financial transactions?
I am sure you do and life is so much faster and easier. Will you believe me if I say that besides opportunities there are challenges of Artificial Intelligence too.
There are negative aspects too. What are these take me to a discussion and my observations and views on it?
Artificial Intelligence (AI) and the Internet of Things (IoT) intersect in many applications and have a powerful visualization of the exchange of data when they are combined together.
Financial transactions are useful in all dimensions of life, whether it concerns an individual or a corporate organization. They are useful for the stock market, banking, investments, budgeting, healthcare, private equity, education, club, commercial and social activities and encompass all aspects of life.
Although there are many advantages of IoT and AI and it enhances productivity, it faces many challenges. The key challenge is that it requires a lot of processing power and technical understanding to work on it as it is very complex.
There are privacy and security breach issues as well. Financial transactions require a lot of privacy and security and any breach can be detrimental for the business. Therefore, infrastructure must be perfectly matched with the instrument and most organizations are not ready to invest their funds to develop manpower by educating and training them to use the applications.
Challenges of IoT and AI
there are three important challenges facing the financial sector in imbibing this technology. Every country is developing itself into an economy with robots and space research and sending drones and robots to expedite and find out about the moon, yet there are challenges in the daily working of machines and new technology.
Privacy: One of the biggest challenges faced by IoT and AI is that it invades the privacy of a person. A person’s entire personal information can be captured and used or misused. Amazon’s Alexa, Microsoft’s Cortana, or Google Assistant all share live recordings from voice assistants to contractors to improve their system.
Some time ago, there was a big issue as Apple’s Siri had captured intimate recordings and private discussions between doctors and patients about some criminal dealings and sexual encounters. This had to be suspended. Apple has given assurance that privacy would be taken care of.
Privacy has become a very big issue as messages from various vendors keep on filling in the message box of private mobile phones and information is sold for a two-pence by the employees of banks and other establishments and the individual victim cannot do anything about it.
If financial transactions are not private then individuals and corporate organizations can become bankrupt and such problems do occur
- Technical Understanding: Another challenge is that technical understanding of IoT and AI is due to a lack of understanding about the importance of updating software updates, people do not update their equipment. Update software resolves technical issues.
when systems are not updated it becomes problematic and devices do not work efficiently. Therefore financial transactions cannot be handled unless proper training is given and there is still a lack of such human resources.
2. Security Breaches: AI devices should be careful in handling security risks. If updates are not taken then financial data becomes prone to hackers as the data becomes insecure.
Therefore, devices periodically have to be tested and updated otherwise there can be security breaches through attackers who can ruin the organization through leakage of financial data. When certain products are sent by mail or through shipping and they have a password and the passwords are not changed there will again be a security breach.
3.Attacks by hackers: Countries have been hit by hackers such as ransomware attacks. Attackers have used malicious software code into the networks to prevent victims from accessing their own data. Recently an oil company was hit by a ransomware attack in the USA and had to pay a huge amount to the hackers.
The USA is hiring a large number of people for trying to reduce hackers in the system.
4. Deep fakes: The USA has also been a victim of Deep Fakes. The voice A Voice Deepfake was used to scam a CEO out of $243,000. Deepfakes have also been used to influence elections. Adult Deep Fakes of Indian film stars thrive online.
The Takeaways
- Take care to keep privacy: The biggest challenge for financial transactions is privacy This must be immediately addressed or there will be a continuous loss in private as well as public dealing.
- Try to be secure and careful of Security breaches: it is plagued with security breaches. An individual wakes up in the morning and finds that a large amount of money is missing from his account. This is a security lapse. Be careful and try to keep yourself as secure as possible. Use only the company websites. Do not repeat passwords and log out securely.
- Be careful of cloning: We have to be careful of Deep Fakes and other cloning software that post a future challenge to us.
To conclude
IoT and AI have many advantages such as speed of working, efficiency and increase in productivity in the financial world.
People have begun to make financial transactions with a click on their mobile phones.
There is an ease of transactions and visiting a bank is no longer necessary with net banking, mobile banking, payment gateways, voice-enabled banking, and AI devices.
So are we ready for moving into the fast world?
We better be careful of the dark side of IoT and AI and take care of security issues, ransomware attacks and Deep Fakes.
Take care of your financial transactions.
©Dr. Preeti Singh, 2021..