Revolution of Financial Services - Role of AI in Effective Risk Management and Fraud Detection

Abstract

Artificial Intelligence (AI) has truly redefined various standard procedures in financial sector, especially identify the fraud and manage the risk. This study discovers recent developments in technology and its impact on financial organizations. In this day and age, financial institutions are now able to efficiently and precisely manage and identify risks and detect fraud activities with modern AI techniques like neural networks, machine learning, and predictive analytics. This study also compares the improvement in fraud detection across medium, large, and small organizations to find out what they can do to ensure customer satisfaction. The study looks at the role of AI in fraud detection when it can evaluate big data, stop fraud, and spot shady trends. This study highlights major benefits of using AI, such as using cost savings, decision-making, and improved regulatory compliance. Employees and managers of financial services sector in India are the respondents for this study. Self-structured questionnaire having questions related to demographics and impact of AI in financial services (with 5-Point Likert scale) used for this study to collecting data through online. To make the most of AI’s potential to improve financial security and operational efficiency, further R&D are needed.