In this chapter, we learned about different AI modeling techniques through two examples—the first with regard to predicting the chances of the borrower going bankrupt and the other with regard to figuring out the funding for the loan. We also learned about reinforcement learning in this chapter. Other artificial intelligence techniques, including deep learning, neural networks, the logistic regression model, decision trees, and Monte Carlo simulation were also covered. We also learned about the business functions of the bank in the context of the examples provided in this chapter.
In the next chapter, we will continue to learn about more AI modeling techniques. We will learn about the linear optimization and linear regression models and use them to solve problems regarding investment banking. We will also learn how AI techniques can become instrumental in mechanizing capital market decisions.