Introduction to AI in Finance: Opportunities and Challenges

Book Title: Intelligent Systems

Editors:  Dr. S.C. Vettivel, Dr. Leema Nelson and Dr. D. Poornima

ISBN:  978-81-979197-4-9

Chapter: 16

DOI: https://doi.org/10.59646/isc16/259

Author:  Dr. Gaurav Rajput, Assistant Professor, Department of Management Studies, Indukaka Ipcowala Institute of Management, CHARUSAT Campus, Changa, Anand, Gujarat- 388421, India

Abstract

The financial industry is undergoing a transformative shift driven by the integration of Artificial Intelligence (AI). This chapter explores the significant opportunities and challenges that AI presents within the financial sector, focusing on its application in areas such as risk management, algorithmic trading, fraud detection, and regulatory compliance. AI’s ability to analyze vast amounts of data in real-time, identify patterns, and predict outcomes has revolutionized traditional financial processes, making them more efficient, accurate, and responsive to market dynamics. However, the adoption of AI also introduces new challenges, including concerns about data privacy, ethical considerations, regulatory compliance, and operational integration. By examining these aspects, this chapter aims to provide a comprehensive understanding of how AI is reshaping the financial landscape and what the future holds for AI in finance.