Impact of AI and Machine Learning on Financial Services

Abstract

Advanced data analytics, automation, and predictive tools powered by AI (Artificial Intelligence) and Machine Learning (ML) are reshaping the global financial services sector, promoting innovation and enhancing efficiency across the sector. Digital financial transactions have surged dramatically, making efficient, secure operations and data-driven decision-making more critical than ever. From retail banking to investment firms, financial organizations are progressively implementing AI and ML technologies to improve decision-making and enhance the customer experience. Complex financial issues such as fraud detection, risk management, credit scoring and algorithmic trading can be addressed using devices like AI and ML. AI and ML however bring challenges related to regulation, ethics, and operations with its rapid rise. This research is carried out know the effect of AI and ML on financial services industry across it’s different domains. The purpose of this research is to explore the implementation of AI and ML across various domains of financial service sector and its effect on wider financial ecosystem by examining the opportunities and challenges, emerging areas, finest practices and scope of future research. This study will provide transformational prospects of AI and ML in the financial service industry.