AI in Financial decision-making
0 viewsAbstract
Artificial intelligence (AI) has multiple applications in the financial sector due to its capacity of processing large amounts of data, finding patterns and helping with decision making. The most common areas where AI is used include credit analysis, investment, fraud detection, financial forecasting and risk management etc. Traditionally, financial decision making processes have been mainly based on historical data and experience, as well as on traditional statistical models. The use of AI will help in analyzing large amounts of structured and unstructured data and providing predictions or recommendations very quickly. However, the use of AI faces several difficulties including those related to data quality, algorithmic biases, lack of transparency, privacy issues, cybersecurity and human liability etc. This report will discuss the use of AI in financial decision making and its pros and cons , will be based on a literature review methodology, where relevant academic literature and research about AI, fintech, risk management and decision making systems will be reviewed.
Keywords
Algorithmic Bias, Algorithmic trading, Artificial Intelligence, Credit Scoring, Financial Decision-Making, Fraud Detection, Investment Analysis, Machine Learning, Risk Management