Adoption of artificial intelligence in financial services: a policy framework
Journal of Science and Technology Policy Management
ISSN: 2053-4620
Article publication date: 3 November 2022
Issue publication date: 25 January 2024
Abstract
Purpose
A crucial contemporary policy question for financial service organizations of being resilient across the globe calls for rethinking and renovating by adopting and adapting to the technologies of artificial intelligence (AI). The purpose of this study is to propose a policy framework for adoption of AI in the finance sector by exploring the driving factors through systems approach.
Design/methodology/approach
Based on literature review and discussions with experts from both industry and academia, nine enablers were shortlisted, which were used in the questionnaire survey to determine ranks of enablers. Further, the study developed the interpretive structural model (ISM) with the help of experts.
Findings
The ISM digraph developed with the help of the experts, resulted in the enablers like anticipated profitability, contactless solutions, credit risk management and software vendor support as dependent factors and stood at the top of the ISM. On the other hand, factors like availability of the data, technical infrastructure and funds are the most driving factors, which lie on the bottom of the ISM.
Research limitations/implications
The study provides implications and policy recommendations for the practicing managers and government agencies approaching the digital transformation towards the adoption of AI in the finance ecosystem.
Originality/value
The paper uses the systems approach for the development of the ISM of the enabling factors for the adoption of AI technology. On the basis of the results, the study proposes a policy framework to accelerate the functioning of the finance ecosystem with AI technology.
Keywords
Acknowledgements
The authors would like to express special thanks of gratitude to all the experts for contributing through their valuable time, knowledge and experience. The authors would also like to thank the staff of the department of management, dean of faculty and director of DEI for providing necessary support.
Citation
Kumari, B., Kaur, J. and Swami, S. (2024), "Adoption of artificial intelligence in financial services: a policy framework", Journal of Science and Technology Policy Management, Vol. 15 No. 2, pp. 396-417. https://doi.org/10.1108/JSTPM-03-2022-0062
Publisher
:Emerald Publishing Limited
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