The adoption of AI In the workplace is rapidly accelerating, and it’s revolutionizing the modern workplace. Businesses in every industry have started reaping the benefits of AI automation: increased productivity, streamlined operations, and rich insights into data. And for commercial lenders, in particular, AI has had a transformative effect on the loan lifecycle.
Until recently, however, access to workplace automation has been limited due to the steep costs and sheer effort of building an AI infrastructure from the ground up. Yet with the launch of AI as a Service, or AIaaS, this is beginning to change. AIaaS technologies are cloud-based, out-of-box solutions that equip businesses with AI-powered capabilities — all without the need for excess time and money investment.
Commercial lenders have a lot to gain by implementing AIaaS technology. With minimal overhead, they can start automating loan structuring, risk monitoring, data analysis, and many other lending processes. In this article, we’ll explore the benefits of AIaaS and why it’s uniquely valuable for commercial lenders.
What is AI as a Service?
First, let’s define artificial intelligence.
AI technologies are computer systems that simulate human behavior and perform complex tasks. Machine learning is one of the most common subsets of AI, and it refers to AI-powered solutions that use algorithms — or sets of instructions — to draw patterns from data, generate original content, and create solutions to new problems.
AIaaS brings AI capabilities to the masses by harnessing the software as a service (SaaS) subscription model. Rather than having to develop new AI algorithms, companies who use AIaaS can tap into pre-built AI algorithms and data processing tools in order to create custom AI-powered workflows.
The use cases of AI are tremendous for businesses — optimizing everything from customer service, to sales forecasting, to financial analysis. Its ability to draw meaningful insights empowers organizations to make data-driven decisions with greater ease.
The Shift Toward AI as a Service
The adoption of AI technology has rapidly accelerated in recent years, and businesses are increasingly confident in AI’s ability to solve common problems like fraud detection and supply chain inefficiencies. According to IBM, the global AI adoption rate increased to 35% in 2022, and 42% of companies are currently exploring AI.
The launch of off-the-shelf AIaaS solutions has played a key role in expanding access to AI for organizations. While in past years, businesses had to develop complex AI hardware and software from the ground up, they now can easily embed AI into their systems and processes with cloud-based technologies. With the traditional roadblocks to AI adoption removed, more businesses can start tapping into rich data and solving for inefficiencies.
The Benefits of AIaaS for Businesses
AIaaS offers a number of advantages over the traditional process of having to build AI technologies in-house. This includes:
AIaaS solutions make use of robust AI models and APIs that can be easily integrated and used out-of-box, while also supporting customizations to meet unique business needs and use cases.
Affordable and transparent pricing
Rather than having to pour significant upfront funding into AI development, businesses can pay subscription fees for ongoing access to pre-built solutions.
Faster time to market
As AI adoption quickly accelerates, businesses that don’t embrace AI are likely to fall behind. In this environment, it’s essential to implement AI technology sooner rather than later — and AIaaS technologies can go live in weeks or months rather than years.
How AIaaS Helps Commercial Lenders
With the help of machine learning algorithms and robust data monitoring, commercial lenders are poised to scale their portfolios and improve satisfaction among stakeholders. AIaaS loan management solutions like AXIS by AIO Logic provide lenders with a number of benefits, such as:
Powerful Data Analysis and Decision Making
Machine learning algorithms — and particularly those powered by generative AI — can mine through large volumes of data and come away with deep insights and actionable takeaways. AIaaS can sort through much larger volumes of data in less time and they can augment manual analysis by pinpointing unique results that are likely to be missed.
So much of the lending lifecycle involves tedious, labor-intensive tasks — from data entry, to documentation preparation, to data aggregation. AXIS by AIO Logic saves lenders time on manual loan management by performing these tasks — and many others — completely automatically.
Enhanced Risk Monitoring
AIaaS solutions monitor a wide range of data points to detect signs of fraud and declining borrower health. Not only does this greatly reduce manual labor, but it also helps ensure that under-the-radar indications of fraud or risk are detected.
With AIaaS technology, lenders can more easily originate diverse loan structures that will result in the best financial outcomes and highest borrower satisfaction. AI algorithms can mine through borrower financials and explore historic loan trends and patterns in order to create personalized loan structures with optimal interest rates.
Harness AI as a Service with Axis by AIO Logic
Access to artificial intelligence has never been easier or more lucrative for commercial lenders and other businesses. According to Deloitte’s State of the AI in the Enterprise, 82% of companies that adopted AI early reported a positive return on investments.
With AXIS by AIO Logic, implementing AI technology is that much more efficient and scalable. AXIS is a complete end-to-end loan management solution that embeds AI algorithms into your existing processes and systems — enabling you to enjoy more informed decision-making, improve your spread, and boost your borrowers’ satisfaction. Contact us today for a demo!