China's internet leviathan Baidu has announced its plan to upgrade the company's financial services by using artificial intelligence (AI), arguing that the technology can help to avoid investment blunders.
According to Zhu Guang, Baidu's senior vice president, the company will cooperate with the Agricultural Bank of China to launch a financial brain project, as well as to develop applications related to evaluations of clients' credit and supervision of their financial risks.
"Based on Baidu's big data and algorithms, we can [deduce] our clients' ages and educational backgrounds with an accuracy rate of 90 and 85 percent respectively. By generating a financial portrait of our clients, we can attract more customers, which is crucial for our future plans," Zhu was quoted as saying by Thepaper.cn on June 20. Zhu also noted that AI technologies can be used for identity recognition and data collection, which are vital elements for the development of the financial industry.
"Compared to humans, AI is more accurate in determining the authenticity of cachet and bills. At the same time, by analyzing and studying clients' behavior and irregular trade events, AI can establish anti-phishing modes to avoid risk," said Zhu.
Introducing AI technologies into the financial sector is not Baidu's initiative alone. According to the Wall Street Journal, Bridgewater Associates, the world's largest hedge fund, is building an artificial intelligence engine to automate management of the company. Rebellion Research, a New York-based investment adviser, also uses AI technologies to make investment decisions.
Following in the steps of its foreign counterparts, Baidu, China's largest search engine, will build two AI-based financial platforms, helping clients to manage their personal wealth and consumption.