Exploring Artificial Intelligence in the Finance Sector

Year : 2024 | Volume : 11 | Issue : 03 | Page : 16 23
    By

    Nikhilesh Singh,

  • Neesha Diwakar,

  1. Research Scholar, MCA, Thakur Institute of Management Studies, Career Development and Research Mumbai, Maharashtra, India
  2. Research Scholar, MCA, Thakur Institute of Management Studies, Career Development and Research Mumbai, Maharashtra, India

Abstract

Artificial intelligence (AI), machine learning (ML), and progressive algorithms illustrate a substantial technological leap with wide applications across sectors like automobiles, healthcare, gaming, finance, entertainment, and more. The foremost objective of AI is to produce intelligent, independent systems capable of self-sustaining decision-making. This study delivers a concise summary of AI, concentrating on its transformative influence on finance, especially within banking, asset firms, derivatives markets, and insurance enterprises. It summarizes the challenges encountered by the financial industry and their importance, as well as the pros and cons of AI acceptance. Additionally, the report delivers recommendations on how AI will form financial enterprises in the future. AI-driven creations in finance guarantee enhanced efficiency, risk management, consumer experience, and personalized services. Regardless, they also expand concerns about data privacy, algorithmic discrimination, cybersecurity, and potential job eviction due to automation. However, adopting AI offers important opportunities for financial organizations to stay competitive, adjust to market dynamics, and provide value-added solutions. By leveraging AI algorithms and data exploration, financial associations can facilitate operations such as credit scoring, fraud detection, portfolio management, and client or consumer service, permitting more immediate decision-making and deeper insights into customer or client behavior. AI-driven chatbots also improve customer relations by delivering personalized suggestions and support. In conclusion, AI is revolutionizing the finance sector, but successful integration needs managing ethical, regulatory, and technological challenges while expanding the benefits.

Keywords: Artificial intelligence, fintech, machine learning, BFSI (banking, financial services, and insurance), investment, derivatives, predictive analytics, risk management, fraud detection

[This article belongs to E-Commerce for Future & Trends ]

How to cite this article:
Nikhilesh Singh, Neesha Diwakar. Exploring Artificial Intelligence in the Finance Sector. E-Commerce for Future & Trends. 2024; 11(03):16-23.
How to cite this URL:
Nikhilesh Singh, Neesha Diwakar. Exploring Artificial Intelligence in the Finance Sector. E-Commerce for Future & Trends. 2024; 11(03):16-23. Available from: https://journals.stmjournals.com/ecft/article=2024/view=161792


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Regular Issue Subscription Review Article
Volume 11
Issue 03
Received 19/03/2024
Accepted 25/06/2024
Published 08/08/2024
606

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