Implementing Artificial Intelligence in Financial Services

Abstract

Financial institutions' operations are altering due to artificial intelligence's (AI) rapid adaption, particularly in terms of its ability to manage risk and efficiency. The purpose of this article is to investigate the relationship between the Eastern Province's financial institutions' usage of AI, its operational efficiency, and the efficacy of risk management. A standardized questionnaire was distributed to banks, insurance businesses, investment firms, and fintech organizations in order to implement the quantitative research approach. Out of 100 surveys distributed, 75 valid replies were obtained, representing a 75% response rate. A five-point Likert scale was used for data measurement, and Pearson correlation analysis was employed for data analysis. The results show a strong positive correlation between the use of AI and both operational productivity and risk control and anti-fraud capabilities. These findings support the study's hypothesis and demonstrate that efficiency and risk management increase with increasing AI usage. The study provides solid empirical data on the use of AI in financial organizations and can be used by practitioners and policymakers, even though the causal linkages cannot be taken into account. To further understand how AI affects financial performance, it is advised that future studies employ larger sample sizes and more advanced analytical techniques.