ARTIFICIAL INTELLIGENCE WAVES IN FINANCIAL SERVICES INDUSTRY: AN EVOLUTION FACTORIAL ANALYSIS

Ardita Todri () and Petraq Papajorgji ()
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Ardita Todri: Associate Professor, University of Elbasan
Petraq Papajorgji: Professor, Proinfinit Consulting Tirana

Regional Science Inquiry, 2024, vol. XVI, issue 2, 63-75

Abstract: Artificial intelligence (AI) has gained prominence in the financial industry. Thus, it is particularly interesting to address the financial services where AI-based systems are mainly used, the reasoning for their use, risks, and evolution potentialities. This research explores the viewpoints of professionals inside and outside the European Union area on AI-based services in the financial industry, aiming to analyze their current position and conceptualize their evolution through an integrative method study. The analyzed data pertain to 523 professionals (out of 740 contacted) who have compiled an online questionnaire related to four study pillars, such as AI-based systems use in financial services (A), the reasoning for their use (B), their risks (C) and evolution potentialities (D). Then, we examine how AI-based systems impact the evolution of AI in financial services (D) use in financial services (A), the reasoning for their use (B), and their risks (C). The study argues that to encourage a sustainable future of AI evolution in the financial sector, the risk management approach is a crucial aspect that regulatory bodies should consider accurately. According to the field professionals' collected opinions in this study referring to their gender and age, special attention should be paid to these risks: AI limitations in forecasting market uncertainties, their lack of ethical values and explainability, as well as their no-audited versions. Therefore, academia and field professionals recommend the establishment of regulatory standards that, compared to risk management approaches, leave enough space even for AI innovation.

Keywords: artificial intelligence; financial services industry; fintech; risk management (search for similar items in EconPapers)
JEL-codes: G21 G22 G23 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:xvi:y:2024:i:2:p:63-75

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