THE EVOLUTION OF SECURITY DOCUMENTATION WITH AI: A REVIEW OF GLOBAL TRENDS IN AI-POWERED LOAN AND SECURITY PROTOCOLS AND THEIR POTENTIAL IMPLICATIONS FOR THE U.S.

Abstract

The integration of Artificial Intelligence (AI) into the financial sector has ushered in a transformative era, particularly in the domain of security documentation. This paper explored AI’s evolution in this sphere, emphasizing its global implications with a concentrated focus on the U.S. landscape. The study’s purpose was to critically map the AI-driven financial landscape, discern challenges and opportunities, and extrapolate future trajectories. Employing a systematic review methodology, we sourced and analyzed peer-reviewed articles, industry reports, and regulatory documents. Our findings revealed a paradigm shift towards AI-enhanced personalized banking experiences, risk assessments, and transaction systems. Furthermore, the convergence of AI with emerging technologies, such as blockchain, was identified as a significant trend. However, the journey is not devoid of challenges. Data privacy, system vulnerabilities, and the opaque nature of certain AI models emerged as areas of concern. The U.S., with its intricate regulatory environment, faces the dual task of fostering innovation while ensuring consumer protection. Conclusively, while AI presents unparalleled opportunities, a balanced approach, emphasizing transparency and collaboration, is imperative. We recommend prioritizing AI decision-making transparency, fostering regulatory collaboration, and championing continuous learning in the face of evolving AI technologies. This paper serves as a compass, guiding stakeholders through the promising yet intricate maze of AI in financial security documentation.