Fintech, a portmanteau of ‘financial technology,’ is used to describe new tech that seeks to improve and automate the delivery and use of financial services. It is an emerging industry that uses technology to enhance activities in finance.
Artificial Intelligence is a way of making a computer, a computer-controlled robot, or a software think intelligently, in a similar manner the intelligent humans think.
Both Fintech and AI are emerging fields and are being seen as the ‘hottest’ sectors in terms of funding and innovation in Canada.
Tech companies from across the world were flocking to Canada to seek out the latest in the field and understand the space before they set up here.
However, According to BetaKit, which covers Canadian start-ups and tech innovation, the AI sector has seen a slight decrease in funding in the previous quarter. But in the long term, this does not mean that things are looking bleak for Artificial Intelligence.
Industry experts attributed the AI decline both to an absence of mega-rounds this quarter, as well as the evolving nature of the AI industry. Some experts said that if the data in past quarters were normalised for the mega-deals, the funding received in this quarter was considered good.
“The growth of Canadian venture-backed AI companies began four to five years ago and caught fire in the last couple of years,” BetaKit quoted an expert.
AI businesses that were previously focused on technology are now in the process of commercialising, talking to their client bases to figure out how foundational AI technology like natural language processing can solve problems in existing businesses.
Artificial intelligence is set to transform whole industries
FinTech generates massive amounts of data from transactions, mortgages, and other financial activity every year, which provides more opportunities for an intersection between the two. With AI now finding its footing in a similar way to FinTech several years ago, experts speculated that we could be on our way to a FinTech unicorn. That is, in the next few years, the tech industry won’t be talking about companies as AI companies.
“Ultimately, machine learning is simply a piece of technology, and companies live or die on whether or not they have a viable business, and you don’t have a viable business because you’re using machine learning or not,” Christian Lassonde, founder and managing partner of FinTech-focused fund Impression Ventures, was quoted as saying.
Machine learning and artificial intelligence go hand in hand and are expected to become the future of just about every industry.
“The best businesses will be ones that use all tools that are available to them in the best possible situation. We’re going to have complex capital markets systems that have a combination of machine learning for what time of day I should invest but may use program logic on what I should be trading. It’s not Machine Learning from top to bottom; it will be a combination of all sorts of technologies.”