Artificial Intelligence in Finance the Next Frontier in Banking and Insurance
Dr V.Ambika1, Dr M.Pitchaimani 2
1 Assistant Professor: Dept. of Commerce
Sri Ramakrishna College of Arts &Science for Women
Coimbatore, Tamil Nadu India
ambikacom@srcw.ac.in
2Principal
Associate Professor: Dept of Commerce
Srimad Andavan Arts and Science College
Tiruchirappalli, Tamil Nadu, India
Mpmani@gmail.com
---------------------------------------------------------------------***---------------------------------------------------------------------
Abstract - Abstract – Artificial intelligence is transforming banking and insurance to drive innovation and efficiency in finance. Machine learning, natural language processing, and predictive analytics are enabling financial institutions to optimize operations, improve decision-making, and deliver personalized customer experiences. Fraud detection, risk management, chatbots, robo-advisors, and automated claims processing are critical applications for addressing the sector’s dynamic challenges.
The ways in which AI is changing finance through secondary data analytics. Tools like AI are enhancing fraud detection accuracy, streamlining underwriting, and delivering real-time credit risk assessments. Chatbots and virtual assistants have transformed customer service, enabling 24/7 support and personalized interactions, while robot-advisors have democratized investment services by delivering automated, data-driven advice to more people focusing on ethical AI governance - ensuring collaborative tech efforts between financial institutions - exploring blockchain and quantum computing Practical steps include improving workforce skills, building regulatory sandboxes for testing AI, and developing academic-industry partnerships for AI R&D.
AI is not just a tool but a transformative force that makes the financial sector more robust. By realising its limitations and promoting a sustainable, customer-focused approach, banking and insurance can realise the full potential of AI to drive long-term growth and inclusion.
Keywords – Artificial Intelligence and Financial Services - Fraud Detection, Customer Experience and Predictive Analytics - AI Ethics and Financial Technology as these innovations take off
