Artificial Intelligence for Financial Services

Abstract

It is difficult to argue against the fact that research has focussed on artificial intelligence (AI) and robotisation over the past few decades. Additionally, during the past several years, it has taken off and is now extensively used in numerous businesses across various industries. Most of the time, AI has been associated with some industrial sector process automation. Still, recently, the authors have noticed more positive technology uses, especially in the financial services industry. Due to several factors, the financial sector needs to adopt AI and recognise its potential. The industry has historically been concerned about unpredictability, legislation, stronger cybersecurity, technological limitations and disruption of established lucrative operations.

Never before has there been more discussion about AI due to the advantages it provides to businesses that are providing financial services. That may explain why this change is referred to as the fourth industrial revolution. Both positively and negatively, it is quite disruptive. The effectiveness, accuracy and cost-effectiveness of solutions greatly increase. However, immense power also entails great responsibility.

Precautions and security are more crucial than ever for businesses since the financial sector is changing significantly and quickly. The various benefits and drawbacks of this technology are yet unknown to humans. Although AI was first shown to us in the 1950s, it has recently gained new prominence as processing power, and the available quantity of data has increased dramatically.

Citation

Kaswan, K.S., Dhatterwal, J.S., Kumar, N. and Lal, S. (2023), "Artificial Intelligence for Financial Services", Grima, S., Sood, K. and Özen, E. (Ed.) Contemporary Studies of Risks in Emerging Technology, Part A (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 71-92. https://doi.org/10.1108/978-1-80455-562-020231006