Book Title: Multidisciplinary Research in the Age of Artificial Intelligence
Chief Editors: Dr. Jagdish Kumar Sahu, and Dr. Byram Anand
Associate Editors: Dr. J. Jayamani, and Albeen Josebh Ahmed
Co-Editors: Dr. Sunakshi Verma, and Mr. Pankaj Bharat Devre
ISBN: 978-93-7183-018-8
Chapter: 2
DOI: https://doi.org/10.59646/781/2
Author: Prajakta A. Satpute
Abstract
Artificial Intelligence (AI) has emerged as a transformative technology in the financial sector by improving operational efficiency, enhancing customer experience, and supporting informed decision-making. Financial institutions increasingly employ AI-powered technologies such as machine learning, natural language processing, robotic process automation, and predictive analytics for applications including fraud detection, credit risk assessment, algorithmic trading, customer relationship management, and financial advisory services. This conceptual paper examines the major applications of AI in finance, discusses its benefits and challenges, and explores future opportunities. The study is based on secondary data collected from scholarly articles, reports, books, and publications from recognized organizations. The review indicates that AI contributes to faster decision-making, cost reduction, improved risk management, and enhanced financial inclusion. However, issues related to data privacy, cybersecurity, algorithmic bias, regulatory compliance, and ethical concerns remain significant challenges. The paper concludes that AI will continue to reshape financial services, provided organizations adopt responsible governance, robust data management practices, and appropriate regulatory frameworks.
Keywords: Artificial Intelligence, Finance, Machine Learning, FinTech, Digital Banking, Financial Services.