Financial Intelligence: The Growing Influence of AI in the Finance Industry

Abstract

This review paper explores the intersection of Artificial Intelligence (AI) and financial technology, emphasizing its transformative impact on stock market predictions, fraud detection, investment decision-making, risk management, regulatory compliance, and privacy protection. The study synthesizes recent advancements in AI-driven financial models, highlighting hybrid approaches that integrate machine learning techniques with traditional economic theories. It provides a comparative analysis of various AI methodologies, examining their effectiveness, scalability, and adaptability in real-world financial environments. Additionally, the paper discusses key challenges in AI adoption, including computational complexity, regulatory constraints, data integrity, and cybersecurity risks. To address these concerns, it proposes innovative solutions for enhancing model interpretability, robustness, and security, ensuring AIdriven financial systems are transparent, resilient, and ethically aligned with industry standards