Data-Driven Decision Making AI Applications in Financial Services

EasyChair Preprint 15337

Abstract

The financial services industry is undergoing a profound transformation driven by rapid technological advancements, increased data availability, and a heightened emphasis on data-driven decision-making. Artificial intelligence (AI) has emerged as a pivotal force in this evolution, reshaping traditional practices and enabling financial institutions to harness vast amounts of data for improved operational efficiency, enhanced customer engagement, and innovative service delivery. This article explores the diverse applications of AI within the financial services sector, including risk management, customer personalization, regulatory compliance, and algorithmic trading.

Moreover, the article highlights how AI facilitates deeper insights into customer behavior, preferences, and market dynamics. By leveraging data analytics, financial institutions can tailor their products and services to meet the specific needs of individual clients, fostering stronger relationships and enhancing customer loyalty. Personalization, powered by AI, has become essential in a competitive landscape where customer expectations are continuously evolving. Institutions that can anticipate and respond to these expectations are more likely to retain their clients and attract new ones.

In addition to operational efficiencies and enhanced customer engagement, the article addresses the transformative impact of AI on compliance and regulatory practices. With the financial sector facing an increasingly complex regulatory landscape, AI can assist in automating compliance processes, ensuring adherence to laws, and reducing the risk of penalties. Real-time monitoring of transactions for suspicious activities can help institutions detect fraud and prevent financial crimes, thereby protecting both the organization and its customers.

Keyphrases: Artificial Intelligence, Customer Personalization, algorithmic bias, financial services, risk management

@booklet{EasyChair:15337,
  author    = {Fragrance Leon},
  title     = {Data-Driven Decision Making AI Applications in Financial Services},
  howpublished = {EasyChair Preprint 15337},
  year      = {EasyChair, 2024}}