Artificial intelligence (AI) transforming the financial sector operations

Abstract

Objective: The study aims to explore the potential of artificial intelligence (AI) in enhancing operations within the financial sector. The primary focus is on identifying functions that could be improved through the adoption of AI technologies. Method: The research methodology involves a comprehensive review of existing literature and research on AI applications in the financial sector. The study examines various dimensions where AI can enhance financial operations and proposes a conceptual framework based on the findings. Results: The study finds that AI significantly impacts several areas of the financial sector, including algorithmic trading, fraud detection, customer service through chatbots, cybersecurity, and accounting. AI enhances predictive analysis, improves service quality, enables rapid and automated decision-making, and provides real-time customer insights. Furthermore, AI's role in cybersecurity and fraud detection is crucial for maintaining compliance and protecting sensitive information. Conclusions: AI transforms financial sector operations by improving efficiency, accuracy, and customer satisfaction. The adoption of AI technologies supports better governance practices, enhances the social aspect of customer interactions, and indirectly contributes to environmental sustainability through improved operational efficiency. These findings underscore the importance of integrating AI in financial operations to achieve sustainable development goals.