AI: CURE-ALL FOR RISK PRACTITIONERS?
Updated: Jun 17
WHY RISK MANAGEMENT PROFESSIONALS SHOULD EMBRACE MACHINE LEARNING
The discussion of artificial intelligence (“AI”) in most industries is often fraught with a degree of controversy. At one end of the spectrum, some believe machine-enabled learning and automation to be a cure-all for the common ailments of any given industry. Where humans fail, robots and computers must surely succeed, free of human error. On the other end of the spectrum come critics of automation, believing that AI will put human professionals out of their jobs. While the subject of AI may, like many, seem like a “love it or hate it” situation, the truth lies somewhere in between - and within the risk management industry in particular, the rise of AI may in fact serve as a tremendous boon to human practitioners of the field.
WHAT IS AI?
In most industries, artificial intelligence serves as a broad term for machine automated methods of problem solving. Examples of AI functions might include navigational capabilities sold alongside cars in the automobile industry, or big data parsing by analytics firms. While AI as a whole remains a relatively young subfield in most arenas of business, it has already begun to show promise as a powerful tool in the hands of smart professionals.
WHAT ROLE DOES AI PLAY IN RISK MANAGEMENT?
One of the most frustrating aspects of the modern risk management field is the sheer volume of data that analysts must sift through in order to derive actionable intelligence and insight. Mining and organizing data manually does not necessarily entail a tremendous amount of expertise, but it does consume significant amounts of valuable analyst hours - hours that could instead be spent on operations that do benefit from more human expertise, such as deriving meaning and explaining complex intelligence to clients.
This is where AI capabilities come into play, and have the greatest opportunity to truly shine. A good machine learning automated platform frees up hours of tedium for the analyst, allowing human subject matter experts to make the most of being in their element. Once the “busy work” end up data curation is automated, analysts have the freedom and opportunity to derive actionable intelligence and shape deliverables as necessary. Indeed, the automated risk management platform is by no means a replacement for human risk professionals - on the contrary, they augment human capabilities, allowing risk professionals to save time, and ultimately, perform better on the job.
THE BEST OF AI IS HERE TO STAY
AI enabled risk management platforms are still, in some ways, in their infancy. However, they are already beginning to show promise as a method of cutting down on the more taxing and less expertise-dependent elements of the risk industry, and saving valuable hours for risk professionals. Ultimately, in their ideal form, AI automated risk platforms will act not as a replacement but as a vital tool in the hands of seasoned practitioners in the industry. Where analysts learn to wield AI capabilities in targeted ways to enhance their work, they will derive all the more benefits from a streamlined risk management process.