Challenges and Countermeasures of Artificial Intelligence Technology in the Application of Financial Industry

Abstract

In recent years, the rapid growth of Artificial Intelligence has become a household name and has developed its use in various fields. Today's AI is permeating all aspects of the financial sector and has become a force for change. This paper summarizes the history of artificial intelligence and delves into the current state of its integration into the financial sector. The capabilities of AI herald a new era of financial innovation but also pose a number of risks and challenges. This paper combines case studies and literature to focus on the data risks faced by AI in finance, the complexity of "black box" algorithms, financial and legal regulatory challenges, and data privacy and ethical issues. As financial institutions increasingly rely on AI-powered solutions, understanding these potential risks becomes critical. This paper concludes with some countermeasures and recommendations to address the potential risks. By deploying AI through collaborative efforts, rigorous oversight, and on high-quality data, the financial community can capitalize on the power of AI to allow fintech to lead the transformation of the industry.