Year: 2025
Type: article
Abstract: The financial industry's swift digital revolution has presented previously unheard-of hazardsas well as amazing opportunities. The complexity and number of hazards have increaseddramatically as financial transactions move to digital platforms and the global financial system becomes more interconnected. Financial fraud schemes have also advancedinsophistication, taking advantage of regulatory loopholes and technology weaknesses. Financial institutions are using artificial intelligence (AI) as a game-changing tool for frauddetection and financial risk management in order to successfully tackle these newissues. Theimpact of artificial intelligence (AI) technologies on risk assessment, fraud prevention, andcompliance monitoring in the financial sector is examined in this article. These technologiesinclude machine learning, deep learning, natural language processing (NLP), and behavioral biometrics. By facilitating real-time data analysis, pattern identification, and anomalydetection across enormous datasets, artificial intelligence (AI) offers clear advantages overconventional rule-based systems. Financial institutions use AI to more quickly and accuratelyidentify fraudulent transactions, evaluate creditworthiness, predict market risks, andguarantee regulatory compliance. By learning from past data and constantly adjustingtonewfraudulent approaches, artificial intelligence (AI) models in fraud detection detect suspiciousactivity, greatly lowering false positives and enhancing the user experience. By evaluatingmarket conditions, consumer behavior, and macroeconomic data, AI-driven predictionmodels in risk management evaluate possible exposures and enable organizationstoimplement proactive risk mitigation measures.
Author: B.Kishore Kumar
Institution: Saveetha University
Language: English
Subfield: Artificial Intelligence
Field: Computer Science
Domain: Physical Sciences
Open Access status: bronze
OpenAlex ID: W4410241457