AI to make financial decisions: Boon or bane?

Artificial intelligence changes financial decision-making by enhancing data analysis, risk assessment, and investment techniques. While AI-driven credit evaluation systems enhance lending choices, Robo-advisors maximise portfolios with low human involvement. Modern banking would benefit much from artificial intelligence's accuracy and error lowering power. However real-time processing of enormous financial data by AI-powered algorithms enables banks and investment companies to make faster and better decisions.

Though it has advantages, artificial intelligence poses many ethical questions and dangers. AI-driven models could draw biased results as algorithms pick prejudices from their training data. Lack of sensitivity of artificial intelligence can also cause the "flash crash" in stock markets. AI increases cybersecurity threats by exposing financial organizations to more advanced fraud and algorithmic manipulation.

Authorities and financial institutions must enforce severe limits if ethical AI use in finance is to be balanced. Human observation, audits, and openness help lower such risks. Although artificial intelligence can assist with financial decisions, human knowledge can never be replaced by it.

Most.Sadia Arafin Maisha, Student

Business Administration-

Human Resource Management and Finance

North South University

sadia.maisha@northsouth.edu