Artificial Intelligence and Financial Decision Making: Adoption, Applications and the Evolving Role of Human Judgement (International Journal of Academic Research & Development)

Summary

• Process automation is the most common AI use case in financial services at 79%, followed by data visualization and software engineering at 75% each.p.5
• In investment decision-making, 73% of investors use AI for finance and investment, but only 12% state that AI had a significant influence on their final investment decision.p.5
• AI applications in credit risk management enabled banks to reduce default rates by 25% by identifying high-risk borrowers more accurately than traditional scoring.p.4
• A hybrid decision-making approach combining AI tools with human advisors is preferred by 50% of surveyed investors.p.5

Key insights

1. AI adoption across global financial institutions reached 81%, yet only 14% consider its impact transformational to their overall organizational strategy.p.4
2. Process automation leads financial AI applications at 79%, while direct analytical decision tools like credit-risk modelling sit at 54%.p.5
3. Human judgment remains central in finance, as 62% of investors rank financial specialists and institutions as their primary source of insight.p.5
4. Algorithmic bias in credit scoring models can reinforce historical data biases, leading to higher loan rejection rates for minority groups.p.4
5. 67% of finance professionals believe AI will cause job transformation rather than outright job elimination.p.4
6. Convolutional neural network models significantly enhance fraud detection by analyzing high-dimensional transactional statistics for subtle anomaly patterns.p.3