Role of AI in Financial Technology

Abstract

ABSTRACT The integration of Artificial Intelligence (AI) in financial technology (fintech) has revolutionized the delivery, consumption, and management of financial services. This study examines the transformative role of AI in fintech, highlighting its applications, benefits, and challenges. A comprehensive review of existing literature and expert interviews reveals AI's profound impact on enhancing customer experience, credit risk assessment, fraud detection, and regulatory compliance. AI-powered chatbots, machine learning algorithms, and natural language processing have significantly improved operational efficiency, reduced costs, and enabled data-driven decision- making. However, concerns regarding data privacy, security, and ethical issues are identified as key challenges. This research contributes to the understanding of AI's potential in fintech, informing stakeholders and policymakers on strategies to harness AI's benefits while mitigating its risks. Keywords: · Artificial Intelligence (AI) · Financial · Technology (Fintech) · Financial Services · Digital Transformation