AI and The Future of Finance: Global Finance at a Crossroads

Abstract

The AI (artificial intelligence) revolution is fast transforming the global economy and the finance world. Accordingly, AI is likely to take over a wide range of financial roles in the financial world and many other related roles in adjacent sectors. AI sort of new innovations may even create much more complicated models and new instruments that provide a competitive edge. AI adoption in finance is expected to enhance automation, optimization, financial forecasting, analytical perspectives, fraud detection as well as enabling informed decision-making processes. Yet the accompanying ethical, risk and security concerns, stability-related issues as well as regulatory and risk management-related challenges also need to be addressed. New means and alternative approaches, regulatory arrangements are needed to mitigate risks related to AI adoption in finance. Risk and security concerns, transparency and accountability issues, new regulatory frameworks as well as other critical roles assumed by AI in shaping finance are all central to this AI-driven future of finance.