Role of Artificial Intelligence in Finance: Selective Literature Review and Implications for Asia's Financial Stability

Zhang Yang (), Qiu Ziang (), Park Donghyun () and Tian Shu ()
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Zhang Yang: Faculty of Business Administration, University of Macau
Qiu Ziang: Faculty of Business Administration, University of Macau
Park Donghyun: The South East Asian Central Banks (SEACEN) Research and Training Centre
Tian Shu: Economic Research and Development Impact Department, Asian Development Bank

Working Papers from South East Asian Central Banks (SEACEN) Research and Training Centre

Abstract: This paper provides a comprehensive systematic review of the transformative impact of Artificial Intelligence (AI) on the global financial landscape. By synthesising 249 peer-reviewed studies published between 1990 and 2025, the research categorises AI’s contributions into three primary domains: asset pricing and portfolio management; financial markets and institutions; and corporate finance and governance. Furthermore, the review offers a specialised assessment of AI’s implications for financial stability within Asia. The findings reveal that while AI acts as a "stabilising intelligence" by enhancing efficiency, predictive precision, and financial inclusion, it simultaneously introduces "adaptive fragility" by concentrating market power, embedding algorithmic biases, and intensifying systemic linkages.

Keywords: Artificial Intelligence; literature review; financial markets; financial stability; Asia (search for similar items in EconPapers)
JEL-codes: G10 G20 G30 M15 O33 (search for similar items in EconPapers)
Date: 2026-02
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