Effect of Artificial Intelligence (AI) on Financial Management: A Review

Abstract

Financial decision-making methods, predictive analysis, and risk management are the focal points of this study's examination of artificial intelligence's (AI) impact on financial control. This research uses a systematic literature review approach to look at the major shifts that have occurred because of AI's implementation in the banking industry, namely in terms of operational performance, financial decision-making, and customer experience. While there are clear benefits to using AI in financial management, this research also highlights some of the risks, ethical difficulties, and concerns related to data protection and adoption, as well as the need for changes to regulations and policies. Organizations and governments may use the findings of this research to better navigate the revolutionary changes in financial management brought about by the digital era. While the advantages of AI in financial control are evident, this study also brings attention to several significant challenges. These include ethical dilemmas, concerns over data security, potential biases in algorithms, and the opaque nature of AI-driven decision-making processes, all of which hinder its broader acceptance. The research further emphasizes the urgent need for updated regulations and policy frameworks to guide the ethical and effective use of AI in financial systems. The study concludes that for AI to be successfully integrated, both corporate entities and government bodies must strike a careful balance between promoting technological advancement and ensuring transparency, fairness, and public confidence. Ultimately, this research offers an in-depth analysis of both the potential benefits and inherent risks of AI in the realm of financial management. It provides valuable recommendations for policymakers, financial organizations, and tech developers as they work to adapt to and shape the evolving digital landscape of financial control