Author(s) :   Dr. Suman Devi

Abstract : Artificial intelligence (AI) is fundamentally reshaping the landscape of financial services, driving operational efficiency, enhancing customer experience, and enabling new business models. Between 2020 and 2025, financial institutions have rapidly accelerated AI adoption, investing billions in technologies ranging from machine learning and natural language processing to robotic process automation and generative AI. This paper provides a comprehensive review of AI’s evolving role in banking, capital markets, insurance, and payments, drawing on recent industry reports, empirical research, and real-world case studies. It analyzes the most impactful AI applications—including fraud detection, credit scoring, investment management, and compliance automation—while also exploring emerging risks related to data privacy, bias, and model governance. The findings highlight that while AI offers unprecedented opportunities for innovation and financial inclusion, responsible implementation and robust regulatory frameworks are essential to realize its benefits and mitigate its risks.

DOI: 10.61161/ijarcsms.v13i6.2

Pages : 10-14

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