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Artificial Intelligence in Finance: Applications, Ethical Challenges, and Governance Frameworks

Artificial Intelligence in Finance: Applications, Ethical Challenges, and Governance Frameworks
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Author(s): Muhammad Fathir Adiyat (Universitas Esa Unggul, Indonesia), Binastya Anggara Sekti (Universitas Esa Unggul, Indonesia), Abhinaya Fikri (Universitas Esa Unggul, Indonesia)and Daffa Maulana Shalahuddin (Universitas Esa Unggul, Indonesia)
Copyright: 2027
Pages: 23
Source title: Encyclopedia of Modern Artificial Intelligence
Source Author(s)/Editor(s): Mehdi Khosrow-Pour, D.B.A. (Founding Editor-in-Chief, Information Resources Management Journal (IRMJ), USA)
DOI: 10.4018/406045

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Abstract

Artificial Intelligence (AI) is reshaping the financial industry through innovations that enhance decision-making, efficiency, risk management, and customer experience. This chapter explores the diverse applications of AI in finance, including algorithmic trading, fraud detection, credit scoring, robo-advisors, and personalized financial services. By leveraging machine learning, natural language processing, and deep learning, financial institutions can automate complex processes, detect anomalies in real-time, and provide data-driven insights. However, the deployment of AI in finance also presents challenges such as algorithmic bias, data privacy concerns, regulatory compliance, and ethical risks. This chapter provides an in-depth analysis of current trends, case studies, and future directions of AI in the financial sector, emphasizing the importance of transparency, fairness, and responsible AI integration to ensure sustainable and inclusive financial innovation.

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