Are we in danger of over-relying on artificial intelligence and driving innovation? Possibly. But it’s hard to automate innovation – after all, a lot of innovation comes from random encounters and events between humans.
AI, for all its potential power, will only play a supporting role in the innovation that creates or drives business. “AI cannot fully manage the accidental discoveries and relationships that are often at the heart of important innovations,” says Spiros Margaris, founder of Margaris Ventures. “While AI is a valuable tool for innovation, it must be used in conjunction with human expertise and creativity to ensure a holistic approach.”
Still, “many companies plan to manage the innovation process with AI and use standalone solutions,” he continues. “I will always argue for an innovation process that involves humans.”
We reached out to Spiros to get his perspective on the ways AI is helping businesses shape or drive innovation. As one of Europe’s top fintech venture capitalists, he is a senior advisor and investor in several fintech, insurtech, cybersecurity, healthcare, and AI sector companies, including two fintech startups valued at $1. More than a billion.
He noted that AI has a key role to play in today’s innovation. “We’ve already seen creative AI help companies innovate by making it easier, cheaper and faster to experiment with new ideas. These models are extremely useful for creating new products and improving existing products. , which helps companies quickly evaluate different options and find the best solution.
At the same time, he adds, “AI is one of many tools that can be used to innovate. In the future, AI innovation will involve a combination of AI-driven insights and human creativity and intuition.” Will be.”
AI will drive innovation and efficiency, which is essential not only for enterprises but also for startups and new companies. “AI’s ability to process and analyze large amounts of data can generate more accurate business insights and strategies,” Spiros says. “In a competitive market, this is essential for both established and new businesses. Additionally, AI is critical for tasks that require substantial data analysis and automation, such as customer segmentation, market analysis, , and operational efficiency.”
He explains that with AI increasingly facilitating sophisticated data analytics, “companies will be able to test and improve business initiatives to develop offerings that are relevant to consumers who lack such insights. are more compelling than those offered by companies.” “The development of AI-powered personalized customer experiences is in its infancy but holds enormous potential for the future.”
AI is playing a role in helping emerging fintechs – as well as existing banks – to develop better offerings. “We have already seen the impact of AI in many areas of the financial industry, including credit scoring, fraud detection, risk management, KYC — know your customer — and personalized customer service,” says Spiros. The upcoming iteration will “enable companies to make informed decisions, streamline processes and offer more personalized services. The technology will also reduce the cost of financial services while increasing access to traditional banking options.”
In the process, he explains, AI will help further democratize financial services, making them even more accessible and affordable to a wider range of people. “This democratization will be particularly beneficial to the underprivileged, who have traditionally faced barriers to accessing these services due to their cost and complexity.”
Spiros added that the fintech industry “has excelled in democratizing the financial sector, and ever more powerful AI models will enable the industry to accelerate the democratization process.”
Still, AI should be approached with caution, he warns. “Regardless of the potential benefits of AI, companies must consider its ethical and regulatory implications, including privacy, security and fairness. To use AI effectively, ensure data quality and ethical practices. A thoughtful approach is required to avoid erroneous conclusions and potential litigation.
“We will always need to understand how an AI model makes a specific decision,” he adds. “Indeed, AI model transparency is essential to ensure that models do not contain biases that are intentionally designed to harm specific individuals.”
Entrepreneurs and companies should “ensure that the data used to train AI models is as unbiased and accurate as possible. Companies that misuse AI are likely to suffer harmful consequences.” .
It should also be noted that AI “can’t solve every problem,” he states. “That is, they shouldn’t think of technology as a magic bullet that can fix everything. AI should complement rather than replace human talent and creativity. A strong business model should complement AI’s capabilities. It must be balanced with human intuition and innovation.
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