Types Of AI And Their Impact On Banks

What is Artificial Intelligence?

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AI is the theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision making, and translation between languages. In computer science, artificial intelligence sometimes called machine intelligence, is demonstrated by machines, in contrast to the natural intelligence displayed by the humans and other animals.

Types of Artificial Intelligence

AI can be classified in any number of ways, there are two types of main classifications.

Type 1

1. Weak AI or Narrow: It is focused on one narrow task, the phenomenon that machines which are not too intelligent to do their own work can be built in such a way that they seem smart. An example will be a 'poker' game where a machine beats human where in which all rules and moves are fed into the machines here each possible scenario need to be entered beforehand manually.

2. Strong AI: The machine that can actually think and perform tasks on its host like a human being. There are no proper examples for this but some industry leaders are very keen on getting close to build a strong AI which has resulted in rapid progress.

Type 2 (Based on Functionalities)

1. Reactive Machines: This is one of the basic forms of AI. It does not have the past memory and cannot use past information to the information for the future actions. Example: IBM chess program that beat Garry Kasparov in the 1990s.

2. Limited Memory: AI systems can be used past experience to inform future decisions. Some of the decision-making functions in self-driving cars have been designed in this way. Observations used to inform actions happening in the not so distant future, such a car that has changed lines. These observations are not stored permanently.

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