The Evolution of AI: From Rule-Based to Generative AI

Artificial intelligence has been around for decades, starting with rule-based AI. However, the emergence of generative AI, which can train itself on large data sets and develop its own rules, has been a game changer. This new AI has the ability to analyze vast amounts of data and provide insights based on probabilistic models. While it offers great potential, there is a need to understand that generative AI is based on statistical models and may not provide a binary truth. Therefore, it requires careful monitoring and validation. The financial services sector is experiencing the democratization of AI, with companies striving to integrate AI into their operations in a responsible and ethical manner by considering data security, privacy, and transparency.