THE ROLE OF AI IN TRANSFORMING FINANCIAL SERVICES: A REVIEW OF FINTECH INNOVATIONS AND IMPACTS

Abstract

The rapid advancements in artificial intelligence (AI) have revolutionized financial services, driving the growth of fintech innovations and transforming traditional banking, investment, and risk management practices. AI-powered solutions, such as machine learning, natural language processing, and predictive analytics, have enhanced decision-making, fraud detection, customer service, and personalized financial planning. This review explores the key applications of AI in financial technology, highlighting its impact on operational efficiency, regulatory compliance, and customer experience. Additionally, the study discusses the challenges associated with AI adoption, including ethical concerns, data privacy issues, and regulatory complexities. The findings suggest that while AI offers significant benefits to the financial sector, its responsible implementation is crucial to ensuring long-term sustainability and trust.