8AUGUST 2025OPINIONIN MYSince the beginning of the first industrial revolution back in the 1760s, humankind has explored new methods to improve efficiency and productivity, accelerate growth, and create new opportunities for innovation and development. Fast forward to the mid-20th century, we are experiencing the Digital Revolution and although the aim is very similar, there is far more complexity and ambiguity around it.The Covid pandemic fuelled a deep and wide technological change resulting in people adopting new ways to complete tasks. We live in an era where we can use our smart devices for everything we do, including communication, shopping, health stats, having doctor consultations and even watching TV. When we stream our favourite show on TV, heaps of data are collected, and recommendations are derived almost instantly to offer us a tailored experience. Using advanced analytics, Machine Learning, and Artificial Intelligence, algorithms can customize the offer depending on the previous shows we've watched to increase the chances for a 'play' to be clicked.Before we progress further, it's worth clarifying some basic principles as follows:· Artificial intelligence (AI) as an overarching principle refers to a machine's ability to perform cognitive functions associated with humans. This includes activities like learning/reasoning (Machine Learning), understanding human language (natural language processing), and robotics (robotic process automation).· Machine Learning (ML) is a branch of artificial intelligence (AI) that focuses on using data to mimic the way human brains learn and improve over time. Instead of providing specific instructions, ML techniques allow computers to be trained by examples and work out the patterns, relationships, causal effect and more. Different techniques can be employed, such as deep learning and supervised learning.· Robotic Process Automation (RPA) is a technology that uses software robots, or "bots", to automate repetitive and rule-based tasks. These bots can mimic human interactions with digital systems and applications, such as data entry, transaction processing, and communication with other systems. RPA aims to improve efficiency, reduce errors, and free up human workers to focus on more complex and value-added tasks. It's widely used across industries for tasks that involve structured data and follow predictable rules.· Natural language processing (NLP) is another branch of artificial intelligence that focuses on the interaction between computers and human language. It involves the development of algorithms and computational models to enable machines to understand, INTELLIGENT LENDINGBy Hugo Assagra, Group Head of Credit Risk Strategy, OSB Group
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