Artificial Intelligence in Financial Services: Risk Management and Fraud Detection

Abstract

This paper explores the transformative impact of artificial intelligence (AI) on risk management and fraud detection within the financial services industry. It provides an overview of AI technologies, including advancements in machine learning, predictive analytics, and natural language processing, and examines their applications in managing financial risks and detecting fraudulent activities. The paper addresses the challenges and limitations associated with AI, such as data privacy concerns, model accuracy, and ethical issues, while also discussing future directions and innovations. By analyzing real-world case studies and emerging trends, this study highlights the potential of AI to enhance the efficiency and effectiveness of financial risk management and fraud prevention.