AI in Finance: Fraud Detection and Risk Assessment
Abstract
Artificial Intelligence (AI) is changing how the financial world spots scams and handles risks. It acts like a super-smart helper, catching trouble fast—whether it’s crooks stealing money or loans going sour. This paper explores how AI helps banks and companies stay safe, digs into what experts have learned, and look at what’s coming next. We also ask a big question to guide future work, all in simple words anyone can follow. This study examines the expanding role of Artificial Intelligence (AI) in enhancing the security of financial institutions, with a particular emphasis on its use in fraud detection, risk evaluation, and overall financial protection. It explores fundamental AI techniques such as machine learning, neural networks, and predictive modeling that drive innovation in the financial sector. The paper also showcases real-world applications and findings from both Indian and international research efforts. In addition, it underscores the need for transparency, fairness, and accountability in deploying AI to ensure ethical practices. By analyzing current developments and emerging challenges, the paper offers insights into the future potential of AI in finance and presents a key question to steer further research, aiming to ensure that AI continues to serve the interests of both financial entities and their clients.
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