THE ROLE OF ARTIFICIAL INTELLIGENCE IN FINANCIAL DECISION-MAKING
Utsav Goswami,
Rashi Mittal
CHAPTER-1 INTRODUCTION
In the realm of finance, decision-making processes have always been pivotal in determining the success or failure of individuals, businesses, and economies at large. With the advent of Artificial Intelligence (AI), this landscape is undergoing a profound transformation. The integration of AI technologies in financial decision-making is not merely an augmentation of existing processes but a fundamental shift in how decisions are conceived, analysed, and executed. This introduction seeks to delve into the evolving role of AI in financial decision-making, particularly within the context of the Indian financial sector.
The rapid pace of technological advancement has propelled AI into the forefront of various industries, and finance is no exception. AI encompasses a spectrum of technologies, including machine learning, natural language processing, deep learning, and predictive analytics, among others. These tools offer the ability to process vast amounts of data, identify patterns, and generate insights at speeds and scales that were previously unimaginable. In the context of financial decision-making, this translates into enhanced capabilities for risk assessment, portfolio optimization, fraud detection, and customer service, among others.
India, with its burgeoning economy and vibrant financial markets, stands at the cusp of this AI-driven revolution. The country's financial ecosystem, characterized by a diverse array of institutions ranging from traditional banks to fintech startups, is ripe for AI-led innovation. The adoption of AI in Indian finance is driven by several factors, including the proliferation of digital technologies, the increasing availability of data, and the imperative for efficiency and competitiveness in a globalized economy. Furthermore, initiatives such as the government's Digital India campaign and regulatory efforts to promote fintech innovation have created a conducive environment for AI adoption in the financial sector.
