The Impact of Artificial Intelligence on Financial Decision-Making

Abstract

By automating formerly manual tasks and facilitating better data analysis and predictive modelling, artificial intelligence (AI) is revolutionising the financial industry. At the individual and institutional levels, this research delves at the ways AI impacts financial decision-making. The use of AI allows for the optimisation of investment strategies, risk assessment in real-time. Both the advantages, like increased efficiency and accuracy, and the disadvantages, such ethical concerns and possible biases in AI systems, are brought to light in the study. This paper provides valuable insights for stakeholders navigating the ever-changing world of finance and helps us comprehend how AI is changing financial processes. The use of AI is causing a sea change in the banking industry since it facilitates better decisions, increases efficiency, and opens the door to new ideas. Using examples from investment management, risk assessment, and fraud detection, this research delves at the revolutionary potential of AI in the realm of financial and predictive analytics allows AI systems to analyse large datasets provide very accurate assistance for data-driven choices. While discussing the pros of AI-driven decision-making such as increased precision, decreased biases, and faster processing times this study also discusses the downsides, such as concerns about data privacy, possible over-reliance on algorithmic systems, and ethical implications. The results highlight the importance of regulatory frameworks and human monitoring. This study adds to our knowledge of how AI changes financial ecosystems and provides useful information for those who are trying to figure out how to make the best decisions possible in a world where technology is taking over.