ARTIFICIAL INTELLIGENCE IN FINANCIAL SERVICES
Author – Sagar Singla, Student of Gitarattan International Business School
Best Citation – Sagar Singla, ARTIFICIAL INTELLIGENCE IN FINANCIAL SERVICES, ILE Consumer Protection Law and Review, 1 (1) of 2023, Pg. 40-46, ISBN – 978-81-961120-4-2.
ABSTRACT
The financial services industry has been revolutionized by artificial intelligence (AI) in recent years, with advancements in machine learning, deep learning, natural language processing, and other AI technologies. AI enables machines to learn from data, identify patterns, and make decisions with minimal human intervention. In financial services, AI is used to analyse vast amounts of data, automate processes, and provide insights that help improve customer experiences, enhance risk management, and increase efficiency. One of the primary applications of AI in financial services is fraud detection and prevention. AI plays a crucial role in algorithmic trading, providing traders with insights into market trends and predictions, leading to more accurate investment decisions[1]. AI-powered risk management tools help financial institutions identify and mitigate potential risks proactively. Personalized investment recommendations are also made possible through AI, providing customers with investment strategies that are tailored to their individual needs. This paper provides an overview of the applications of AI in financial services and explores the future trends in this field[2]. It highlights the benefits of AI for financial institutions, such as improved efficiency, enhanced customer experiences, and better risk management. The paper also discusses the challenges and limitations of AI in financial services, including regulatory compliance, ethical considerations, and data privacy. Finally, it concludes with a discussion of the future of AI in financial services, including the potential for increased automation, improved decision-making, and new opportunities for innovation[3].
Key words: Fraud detection, machine Learning, Artificial Intelligence, Data mining, Personalization, Credit scoring, Risk assessment, Blockchain technology
[1] Jia, H., & Li, Y. (2020). Applications of artificial intelligence in the financial industry: A systematic review. IEEE Access, 8, 156918-156931.
[2] Schmitt, M., & Möller, M. (2021). Artificial intelligence in financial services: A comprehensive review. Journal of Banking & Finance, 129, 106029.
[3] O’Brien, K. J., & Marcellino, G. (2021). Artificial intelligence and financial services: Understanding the regulatory landscape. Journal of Business Research, 123, 522-528.