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Artificial Intelligence Waves In Financial Services Industry: An Evolution Factorial Analysis

Author

Listed:
  • Ardita TODRI

    (Associate Professor, University of Elbasan)

  • Petraq PAPAJORGJI

    (Professor, Proinfinit Consulting Tirana)

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.

Suggested Citation

  • Ardita TODRI & Petraq PAPAJORGJI, 2024. "Artificial Intelligence Waves In Financial Services Industry: An Evolution Factorial Analysis," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 63-75, June.
    • Handle: RePEc:hrs:journl:v:xvi:y:2024:i:2:p:63-75
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    References listed on IDEAS

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    More about this item

    Keywords

    artificial intelligence; financial services industry; fintech; risk management;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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