Artificial Intelligence Integration in Financial Decision-Making: Empirical Insights from Emerging Markets

The integration of Artificial Intelligence (AI) in finance has redefined decision-making, financial forecasting, and risk assessment. This study examines the influence of AI-driven financial analytics on firm performance across selected emerging markets. Using a balanced panel dataset of 150 firms from India, Malaysia, and Brazil over 2015–2023, this research applies both econometric and machine learning approaches to analyze how AI adoption affects profitability, risk management, and forecasting accuracy. Results show that AI implementation positively and significantly impacts firms’ return on assets (ROA) and return on equity (ROE), with AI-based forecasting models outperforming traditional regression models in predictive accuracy by 28%. Findings underscore the transformative potential of AI in financial management and provide implications for corporate strategists, auditors, and policymakers seeking sustainable digital transformation.