AI REVOLUTION IN FINANCE: TRANSFORMING BANKING, INVESTMENT, AND RISK MANAGEMENT
Keywords:
Artificial Intelligence, Financial Technology, Risk Management, Algorithmic Trading, Regulatory ComplianceAbstract
This comprehensive article explores the transformative impact of Artificial Intelligence (AI) on the financial industry, focusing on its applications in banking, investment, trading, regulatory compliance, and risk management. It examines how AI technologies revolutionize traditional practices, enhance efficiency, and introduce innovative solutions across various financial sectors. The article discusses specific examples of AI implementation by major financial institutions, highlighting the benefits and challenges of these advancements. It also delves into the future prospects of AI in finance, including emerging technologies like quantum computing and explainable AI, while addressing the ethical considerations and regulatory challenges accompanying the increasing reliance on AI in financial decision-making.
References
H. Son, "JPMorgan Software Does in Seconds What Took Lawyers 360,000 Hours," Bloomberg, Feb. 28, 2017. [Online]. Available: https://www.bloomberg.com/news/articles/2017-02-28/jpmorgan-marshals-an-army-of-developers-to-automate-high-finance
BlackRock, "Aladdin," BlackRock, 2024. [Online]. Available: https://www.blackrock.com/aladdin
Danske Bank, "Using AI to fight fraud and financial crime," Danske Bank, Sep. 20, 2019. [Online]. Available: https://danskebank.com/news-and-insights/news-archive/news/2019/20092019
ZestFinance, "Case Study: How AI Increased Approvals by 25%," ZestFinance, 2021. [Online]. Available: https://www.zest.ai/resources/case-study-how-ai-increased-approvals-by-25
K. Rooney, "Secretive hedge fund giant Two Sigma is betting big on AI in Asia," CNBC, Nov. 27, 2019. [Online]. Available: https://www.cnbc.com/2019/11/27/secretive-hedge-fund-giant-two-sigma-is-betting-big-on-ai-in-asia.html
L. Fletcher, "How the world's biggest hedge fund used AI to gain 14.6% in a tumultuous year," Financial Times, Jan. 4, 2023. [Online]. Available: https://www.ft.com/content/8f82609c-4f7a-441d-b5e0-37e8f0c81358
Morgan Stanley, "Next Best Action: Empowering Morgan Stanley's Financial Advisors with AI," Harvard Business School Digital Initiative, Apr. 8, 2019. [Online]. Available: https://digital.hbs.edu/platform-digit/submission/next-best-action-empowering-morgan-stanleys-financial-advisors-with-ai/
HSBC, "HSBC partners with Quantexa to combat financial crime," HSBC, Jun. 24, 2019. [Online]. Available: https://www.hsbc.com/news-and-media/hsbc-news/2019/hsbc-partners-with-quantexa-to-combat-financial-crime
H. Son, "JP Morgan's massive guide to machine learning and big data jobs in finance," Business Insider, May 28, 2017. [Online]. Available: https://www.businessinsider.com/jp-morgans-massive-guide-to-machine-learning-and-big-data-jobs-in-finance-2017-5
A. Lielacher, "JPMorgan and IBM Collaborate on Quantum Computing for Finance," Nasdaq, Mar. 2, 2023. [Online]. Available: https://www.nasdaq.com/articles/jpmorgan-and-ibm-collaborate-on-quantum-computing-for-finance
European Commission, "Proposal for a Regulation laying down harmonised rules on artificial intelligence," Apr. 21, 2021. [Online]. Available: https://digital-strategy.ec.europa.eu/en/library/proposal-regulation-laying-down-harmonised-rules-artificial-intelligence
