Artificial Intelligence in Fraud Detection and Financial Risk Mitigation: Future Directions and Business Applications

Abstract

AI in fraud detection and financial risk management has taken this role of prevention and combating fraud closely related to organizations and the losses they incur a next level. This paper aims to discuss the use of artificial intelligence models in the process of detecting frauds and preventing and reducing financial risks in such markets as banking, insurance, and fintech. Today, through machine learning algorithms, deep learning techniques, and data analysis, the AI improves the speed, accuracy and effectiveness of fraud detection. This paper discusses the current AI models and business use incorporating the success story and the business outcomes which has encountered sometime to have the best result. Furthermore, the paper examines other important issues of AI application management such as data security and liberation, and complete fairness control. Using examples as well as statistical data in this AI for business article, we show how corporations have managed to minimize their risks while lowering their expenses with the use of artificial intelligence technology. This research outlines ideas on how organizations can implement AI into fraud detection systems and what can be done in future to enhance the solutions. This paper adds to the emerging body of knowledge on AI’s impact on finance and security, and demonstrates AI’s ability to influence the future of the industry.