Role of AI in financial decision-making

Artificial intelligence (AI) is transforming the way financial decisions are made, introducing powerful tools like machine learning, robotic advisors, and big data analytics. These technologies enable real-time analysis of vast amounts of data, allowing both individuals and businesses to make smarter, faster financial choices. For instance, robo-advisors provide automated investment management, tailoring strategies to each client's goals and risk tolerance. As a result, expert financial advice has become more accessible and affordable, empowering a broader range of people to engage in investing.

AI also improves financial forecasting and risk assessment by identifying trends in historical data, helping businesses manage cash flow, inventory, and growth more effectively. In the lending sector, AI enhances credit scoring by leveraging alternative data sources, making it easier for individuals without traditional credit histories to secure loans. Additionally, AI strengthens fraud detection by continuously monitoring transactions for suspicious activity, offering real-time protection for users' finances.

As AI technology continues to evolve, it will play an increasingly significant role in financial decision-making, boosting both efficiency and accessibility. This shift not only empowers individuals and businesses but also fosters a more inclusive financial landscape, where technology and human insight work together to navigate the complexities of the modern economy.

Ayesha Momtaz Maliha

Student

North South University

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