AI-Powered Financial Innovation: Balancing Opportunities and Risks

EasyChair Preprint 14398

Abstract

The rapid integration of artificial intelligence (AI) in financial services has ushered in a new era of innovation, transforming the industry with unprecedented speed and precision. This paper explores the dual nature of AI-driven innovation in the financial sector, examining both the opportunities and the associated risks. On the one hand, AI technologies enhance operational efficiency, improve customer experiences, and enable data-driven decision-making, offering significant competitive advantages. On the other hand, these advancements also bring forth challenges, including ethical concerns, data privacy issues, and the potential for systemic risks. This study aims to provide a balanced perspective, highlighting the potential benefits of AI in finance while also addressing the critical need for robust regulatory frameworks and risk management strategies to ensure the sustainable and ethical adoption of AI technologies. By examining case studies and current practices, the paper underscores the importance of a cautious yet proactive approach to harnessing the power of AI in financial innovation.

Keyphrases: Opportunities, Risks, and

@booklet{EasyChair:14398,
  author    = {Julia Anderson and Zillay Huma},
  title     = {AI-Powered Financial Innovation: Balancing Opportunities and Risks},
  howpublished = {EasyChair Preprint 14398},
  year      = {EasyChair, 2024}}