Artificial Intelligence Ethics Best Practices Model for Financial Decision-Making in Chinese Financial Institutions

Abstract

Chinese financial institutions (CFIs) are increasingly embracing artificial intelligence (AI) for their financial decision-making driven by AI's capacity to mitigate risks and enhance efficiency and accuracy. However, there remain ethical challenges related to the integration of AI in financial decision-making. This study develops the AI ethics best practices model (AB-PraM) to mitigate ethical concerns and enhance the application of AI in financial decision-making. By employing a quantitative methodology, this research collected questionnaire data from 320 financial experts in CFIs. Structural equation modelling (SEM) was adopted to identify AI ethics best practices for the implementation of the AB-PraM. The findings of this research will mitigate AI ethics challenges in CFIs and provide a practical framework for transparent and accountable decision-making in alignment with ethical standards and regulations.

Ethical Implications of Ai in Financial Decision – Making: A Review With Real World Applications

“…The reliance on AI for critical financial decisions necessitates a rigorous examination of the ethical considerations surrounding AI's application. The development of ethical AI frameworks, as discussed by Mai, Ambashe, and Ohueri (2024), is crucial to ensure that AI technologies are deployed responsibly, with adequate consideration for data privacy, bias mitigation, and transparency. These ethical frameworks aim to balance the technological advancements brought about by AI with the imperative to uphold ethical standards in financial decision-making.…”

“…Addressing these risks and unintended consequences demands a multidisciplinary approach, integrating insights from technology, ethics, psychology, and financial theory to develop AI systems that are not only technically advanced but also aligned with ethical standards and conducive to healthy financial ecosystems. The development of AI ethics best practices models, such as the AB-PraM proposed by Mai, Ambashe, and Ohueri (2024), represents a step in the right direction, aiming to enhance transparency and accountability in AI-assisted financial decisionmaking.…”