AI in Financial Planning - Opportunities and Challenges
Keywords:
Artificial Intelligence, Financial Planning, Predictive Analytics, Ethical Considerations, Regulatory FrameworksAbstract
This study seeks to assess the impact of artificial intelligence in the financial sector with emphasis on planning and services, benefits, and drawbacks of integrating AI into finance. It starts with a historical background of AI in financial services based on the earliest computational models that were introduced into algorithmic trading, fraud detection, and risk management. The benefits offered by the application of AI are considered: improved decision-making processes grounded on predictive accuracy and other relevant areas which could assist in decision-making. This will also encompass ethical and integration challenges, implementing AI in finance with respect to data privacy and rights, and facing algorithmic bias. Case studies aid in understanding unintended consequences of AI use in financial decision-making requiring an upfront approach towards the setting of strong codes of use as well as robust regulations. Having looked into the merits and demerits of AI application in financial services, the article concludes by suggesting a need for further research into fair and ethical use of AI.