Is there a risk of relying too much on artificial intelligence to create and drive innovation? Perhaps. But innovation is difficult to automate. After all, many innovations emerge from chance encounters and events between humans.
Despite its potential, AI only plays a supporting role in the innovations that create or advance business. “AI cannot fully codify the serendipitous discoveries and relationships that are often at the heart of breakthrough innovations,” says Spiros Margaris, founder of Margaris Ventures. “AI is a valuable tool for innovation, but it must be used in conjunction with human skills and creativity to ensure a holistic approach.”
Still, “many companies will look to use AI to codify their innovation processes and adopt standalone solutions,” he continues. “I always advocate an innovation process that includes humans.”
We asked Spiros for his thoughts on how AI is helping shape business and drive innovation. As one of Europe’s top fintech venture capitalists, he has senior leadership in several companies in the fintech, insurtech, cybersecurity, healthcare and AI sectors, including two fintech startups valued at over $1 billion. He is also an advisor and an investor.
He points out that AI plays a key role in today’s innovation. “We are already seeing generative AI helping companies innovate by making it easier, cheaper, and faster to experiment with new ideas. It is extremely useful for developing products and improving existing products, allowing companies to quickly test different options and find the optimal solution.”
At the same time, “AI is just one of many tools available for innovation. Future AI innovations will combine AI insights with human creativity and intuition.”
AI drives innovation and efficiency, which is essential not only for businesses but also for startups and startups. “AI’s ability to process and analyze vast amounts of data can generate more accurate business insights and strategies,” Spiros said. “In a competitive market, this is essential for both existing and new businesses. Additionally, AI is essential for tasks that require significant data analysis and automation, such as customer segmentation, market analysis, and operational efficiency.” is.”
As AI facilitates increasingly sophisticated data analysis, “companies can test and fine-tune business initiatives and create offerings that are more attractive to customers than those offered by companies without such insights.” “We’ll be able to do that,” he explains. “The development of AI-powered personalized customer experiences is still in its early stages, but it holds tremendous potential for the future.”
AI is playing a role in helping established banks as well as emerging fintech companies provide better services. “We are already seeing the impact of AI in several areas of the financial industry, including credit scoring, fraud detection, risk management, KYC (Know Your Customer), and personalized customer service.” Spiros says. Future iterations will “enable businesses to make informed decisions, streamline processes, and provide more personalized service.” The technology will increase access to traditional banking options while increasing access to traditional banking options. , which also reduces the cost of financial services. ”
In the process, he explains, AI will “further democratize financial services, making them more accessible and affordable to a wider range of people.” “This democratization will be particularly beneficial to disadvantaged populations, who have traditionally faced barriers to accessing these services due to cost and complexity.”
The fintech industry is “excellent at democratizing the financial sector, and ever more powerful AI models will enable the industry to accelerate the democratization process,” Spiros added.
Still, he cautions that AI needs to be approached with caution. “Regardless of the potential benefits of AI, companies must consider ethical and regulatory implications, including privacy, security, and fairness. To use AI effectively, ensure data quality. It requires a thoughtful approach and ethical practices to avoid flawed results and potential litigation.”
“You always need to understand how an AI model makes a particular decision,” he adds. “Indeed, transparency in AI models is essential to ensure that they do not contain biases that are intentionally designed to harm particular individuals.”
Entrepreneurs and businesses “must ensure that the data used to train AI models is as unbiased and accurate as possible. Companies that misuse AI are likely to be negatively impacted.”
We must also remember that AI “cannot solve all problems.” “That is, they should not think of this technology as a magic pill that will solve everything. AI should complement, not replace, human skills and creativity. We need to balance competence with human intuition and innovation.”
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