Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 63 , 28 December 2023
Open
Access | Article
Challenges and Countermeasures of Artificial Intelligence Technology in the Application of Financial Industry
* Author to whom correspondence should be addressed.
Abstract
In recent years, the rapid growth of Artificial Intelligence has become a household name and has developed its use in various fields. Today's AI is permeating all aspects of the financial sector and has become a force for change. This paper summarizes the history of artificial intelligence and delves into the current state of its integration into the financial sector. The capabilities of AI herald a new era of financial innovation but also pose a number of risks and challenges. This paper combines case studies and literature to focus on the data risks faced by AI in finance, the complexity of "black box" algorithms, financial and legal regulatory challenges, and data privacy and ethical issues. As financial institutions increasingly rely on AI-powered solutions, understanding these potential risks becomes critical. This paper concludes with some countermeasures and recommendations to address the potential risks. By deploying AI through collaborative efforts, rigorous oversight, and on high-quality data, the financial community can capitalize on the power of AI to allow fintech to lead the transformation of the industry.
Keywords
Artificial Intelligence, Financial Industry, Challenges, Countermeasures
References
1. Ding, D., Jin, Y., & Feng, Y. (2021, September 27). Finance MBA Class 2020 | Overview of Artificial Intelligence in Financial Scenarios. https://fmba.pbcsf.tsinghua.edu.cn/info/1027/1182.htm
2. Jia, K., Kenney, M., Mattila, J., & Seppala, T. (2018, April 25). The application of Artificial Intelligence at Chinese Digital Platform Giants: Baidu, Alibaba and Tencent. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3154038
3. Hilpisch, Y. (2021). Artificial Intelligence in finance: A python-based guide. O’Reilly Media.
4. Eugene Charniak and Drew Mcdermott. Introduction to Artificial Intelligence. Pearson Education India, 01 1986.
5. Novaes Neto, N., Madnick, S., Moraes G. de Paula, A., & Malara Borges, N. (2020, March 17). A case study of the Capital One Data Breach. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3542567
6. Bartlett, R., Morse, A., Stanton, R., & Wallace, N. (2019, June 17). Consumer-lending discrimination in the Fintech Era. NBER. https://www.nber.org/papers/w25943
7. Financial institution. Financial Institution - an overview | ScienceDirect Topics. (n.d.). https://www.sciencedirect.com/topics/economics-econometrics-and-finance/financial-institution
8. Främling, K., Westberg, M., Jullum, M., Madhikermi, M., & Malhi, A. (1970, January 1). Comparison of contextual importance and utility with lime and Shapley Values. SpringerLink. https://link.springer.com/chapter/10.1007/978-3-030-82017-6_3
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-227-5
- ISBN (Online)
- 978-1-83558-228-2
- Published Date
- 28 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/63/20231382
- Copyright
- 28 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited