Author(s)

Sarah Williams¹, David Lee^2*

Affiliation(s)

¹Faculty of Computing, University of Waterloo, Canada.

²School of Engineering, National University of Singapore, Singapore.

Corresponding Author

David Lee

ABSTRACT

Artificial Intelligence (AI) is revolutionizing the financial industry, offering new opportunities for improved efficiency, personalized services, and enhanced decision-making. This review article provides a comprehensive overview of the impact of AI on finance, discussing its applications, challenges, and future prospects. The article explores key areas where AI is making a significant difference, including fraud detection and prevention, risk management, trading and investment, and customer service. It highlights the benefits of AI in each domain, such as real-time anomaly detection, accurate credit risk assessment, algorithmic trading, and personalized financial advice. However, the article also addresses the challenges and considerations associated with AI adoption, including regulatory compliance, data privacy, algorithmic bias, integration with legacy systems, and the talent and skills gap. Looking ahead, the article discusses emerging trends and opportunities, such as the integration of AI with blockchain, AI-driven financial inclusion, and collaborative human-machine partnerships. It also explores potential disruptions to traditional financial roles and business models. The article concludes by emphasizing the need for strategic planning, investment in research and development, and collaboration among stakeholders to harness the full potential of AI in finance while navigating its challenges.

KEYWORDS

Machine learning; Fraud detection; Risk management; Trading; Investment; Customer service

CITE THIS PAPER

Sarah Williams, David Lee. The impact of artificial intelligence on the financial industry: a review. Journal of Trends in Applied Science and Advanced Technologies. 2024, 1(1): 6-11. DOI: https://doi.org/10.61784/asat3003.

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