Artificial Intelligence in Finance: Transforming Financial Decision-Making, Risk Management, and Market Efficiency
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Artificial intelligence (AI) is becoming increasingly prevalent in our daily lives, from computers completing daily tasks to detecting abnormalities and self-driving cars. AI is starting to be utilized widely in finance to help with decision-making, risk management, fraud detection, etc. The financial industry has been historically driven by human analysis and choices based on current, historical data and end-of-day or end-of-week processing. With the emergence of AI, financial services can operate in real-time or near-real-time to recognize patterns and trends and make predictive decisions. This paper aims to research if AI integration is superior to traditional financial technology. The current literature is analyzed to show where AI is being implemented in finance and how it can help. Improvements to efficiency, accuracy, and expenses are discussed. Findings show that AI has great potential to better finance but is hindered by gray areas in regulations, ethical concerns, and expensive implementation.
Keywords
Ai, Finance, Financial Technology (FinTech), Fraud, Machine Learning, Risk