Applications of Artificial Intelligence in Financial Management Decisions:

A Mini-Review

Laila Al-Blooshi
Abu Dhabi University, Email: 1059690@students.adu.ac.ae
Haitham Nobanee
Abu Dhabi University, Email: haitham.nobanee@adu.ac.ae

Abstract
Artificial Intelligence (AI) has, during the past few years, made many signs of progress which
have enabled the creation of professional financing applications, which would, perhaps,
disrupt the finance industry. Thus, it is assumed that the AI could not only replace human
capital in full or in part but also enhance its performance beyond human benchmarks. For
companies around the world, there are a variety of programs.
A systemic content analysis methodology was used to evaluate related literature publications
in this study. A selection of papers, including posts, has been collected. This research focuses
on broad publications peer-reviewed, including Scopus and SSRN, which are listed in quality
and impact rankings. This selection of the highest-ranking papers not only guaranteed the
quality of papers that were most reviewed and validated but also provided the most up-to-date
research state during their publication periods. Some keywords are used to scan for artificial
intelligence papers, such as artificial intelligence and financial articles such as corporate
finance, artificial intelligence, digital finance, financial and artificial intelligence, etc.
AI has been found to be used by organizations around the world for the detection of
anomalies. It is used to establish optimal investment strategies. The other use of AI in
securities is algorithmic trading, programs that integrate information regarding changing
market dynamics and price levels by using proprietary algorithms to making automated
trading very rapidly.
However, given the financial consequences, companies should ensure a sufficient
understanding of the AI and other technology used in business by the senior management and
the board to ensure proper monitoring. This is particularly important in view of the growing
expectations of Board members to monitor substantive issues affecting the long-term value of
a company. The decision-making, deployment, and use of AI must be carried out within the
context of risk management, in order to capture market improvements. It will include four
main tasks, including risk recognition, risk assessment, prevention and risk control.

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Introduction
In the field of finance, Artificial Intelligence is renovating the procedures for dealing with
finance. Artificial Intellect is assisting the fiscal diligence to modernize and enhance
progressions extending from credit decisions to a quantifiable transaction and commercial
risk administration. Traditional banking has been transformed within the financial services
over time due to great innovations and like the rest the way business functions, besides the
nature of professions (Bagheri, 2014). The financial services diligence has an antiquity of
expending computable approaches and a set of rules to support assessment making. These are
the basis of AI coordination, and the trade is consequently well-informed for AI
implementation, placing it at the lead of employing and promoting since AI knowledge (
Chan, Nayler, Raman, & Baker, 2019). AI can figure on hominoid intellect by identifying
outlines and variances in bulky aggregates of figures, which is significant in solicitations such
as anomaly recognition (instance; false dealings). AI may perhaps as well gauge and program
monotonous odd jobs in a further anticipated technique – together with multifaceted
computations, for illustration risk identifications associated with commercial transactions
(Bahrammirzaee, 2010).
Artificial Intelligence has captured the modern diffusion trends of perceived markets. The
idea of artificial intelligence is presently being practically used in diverse sectors. The
industry of financial organizations is dealing with artificial intelligence in real advanced
ways. The great invention of artificial intelligence is leading the industry of finance with a
fabulous tempest. In most of the daily aspects of the financial industry, AI is being applied to
acquire the advantages of time consumptions, cutting off cost and furthermore bringing in
added in values with faster assistance ( Eletter, Yaseen, & Elrefae, 2010). It is also reported
that the famous leading foremost International based corporate financial sectors are relying
on Artificial intelligence that has implemented within the opportunity of considered
technological progressions by the outcome the Artificial Intelligence with superior functional
assistance to the customers, enlightening performance and generating greater proceeds of
income sources (To & Lee, 2010).
Today the capitalists with their latest methods of dealing with business are apprehended with
enormous benefits of advanced digitalization on the International perspectives particularly in
the present era. The technology of Google, Twitter, Facebook, Microsoft and Apple has
shaped the daily official interactions and communications with one another in a monotonous
time period (Kraus & Palmer, 2018). Calculating, storage and investigating info is not merely
being at ease, but then again likewise further flexible and cost-effective such as I-cloud

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assistances are ongoing to advance and the network of the internet is renovating in the
direction of the so entitled “Internet of Assets”. Through network sequence, the shift to the
“Internet of Ideals” has been started to activate. Starting from the Year 2020 the artificial
intelligence is anticipated to be applied in 90% of electronic engineering for new
merchandise enterprises and global dimensions of $1.2 billion of legitimate cryptocurrencies
will be transacted in the finance diligence. (Richter, 2017)
As the Artificial Intelligence wonder causes various inferences through speedy and
transformative change, it is significant for financiers and private enterprise investigators to be
alert of correlated consequences and influences and pinpoint emergent prospects on business.
The main features of dealing with commercial services of financial trade, applications of
Artificial Intelligence comprise algorithmic tradeoff, a configuration of trading portfolio and
leveraging, model authentication, recheck testing, robotic-instructing, simulated purchaser
subordinates, marketplace bearing exploration, supervisory agreement and pressure trial
assessment testing (Fethi & Pasiouras, 2009). The mode of Artificial Intelligence is bringing
about tremendous transformations in sectors of finance which are mainly detection of fraud
and regulations, chatbots and robot-instructor services and computations of insider trading
with algorithms.
Artificial Intellect (AI) is striking to be a break-even point for the finance industry. Through
frequent AI utilization in the long run, huge improvements might be comprehended over the
approaching period. The business is probable to with the exception of an additional $1 trillion
by the 2030 year-end with outdated monetary institutions cutting 23% from their budgets
(Kraus & Palmer, 2018).

Chatbots and simulated subordinates

Gravity is escalating on banks to accept a cardinal outlook. Banks requisite to familiarize to
developing prospects of customers, lessen expenses, avoid damages of trade to quicker
initiate-up challengers, and discover innovative means to propagate incomes. Banks' needs
are demanding to magnify aspects of obstacles in the practice of increasing buyer budgets
triggered by swift progress and wide creation outlines (Demyanyk, 2010). Banks often face
issues to handle with an expanding capacity of queries related to customer call-centers and
client correspondent electronic mail, and it is known that the Bank conventional customer-
service model has inadequate financial prudence of balance and adjusts unwell.
Consequently, banks are implementing chatbots or “hi-tech personality”. These could benefit

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and provide on the stipulation, automatic assistance, such as allocating with repeatedly
enquired interrogations; accomplish financial services; and assist with fiscal applications
(Kraus & Palmer, 2018).
Scam recognition (Detecting fraud): With the emergence of E-commerce deception or
fraud online has greater than before and it is not so much possible to avoid. Recently the
United States has reported the detection of fraud 15 times of the concrete deception rate.
Artificial Intelligence comes in within reach nowadays. Through the support of investigating
statistical facts, the procedure of appliance practices can currently identify the false contract
deprived of some information to the humanoid specialists with the advancement of the
accurateness of actual period authorizations and reducing wrong failures ( Eletter, Yaseen, &
Elrefae, 2010). Multinational companies are currently exploring with Artificial Intelligence to
identify and crosscheck with unreliable prevention in financial sectors. One of the best use of
artificial intelligence applications we can observe is with the MasterCard. If the fraudsters are
trying to use some else’s MasterCard by stealing information and data the artificial Decision
Intelligence technology will analyze the actual data and send immediate notifications in the
genuine holders' email or smartphones and all related communicating mediums associated
with personalized wallets (Buchanan, 2019).
Protecting security: Many of the administrations are attempting to gadget the Artificial
Intellect in order to raise the safekeeping for operational dealings and associated services. It
is possible if there is processer access which can forecast the unlawful databases precisely
(Dirican, 2015).
Expenditure Configuration Forecast: Artificial Intelligence is beneficial for shopper
expenditure recognition used by numerous companies and financial service sectors. It will be
obliging when the cars are stolen or the account is hacked in order to avoid the deception or
shoplifting (Giudici, 2018).
Stock Dealer scheme: A computer system has been trained to predict when to buy or sell
shares in order to buy or sell shares in order to maximize the profits when to minimize the
losses during the uncertainties and meltdown. Client-side user validation: This can again
authenticate or recognize the user and permit the deal to come to pass (Fethi & Pasiouras,
2009).

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Methodology
A systemic content analysis approach was used to analyze relevant literature publications.
The published literature contains papers which have been collected for this study. This
research focuses on the broad journal's database such as Scopus and SSRN, which have been
reviewed in terms of content and impact scores. The collection of the highest-ranking articles
not only guaranteed the consistency of the publications that were most checked and
confirmed but also made the current research condition the nearest to them during their
respective publishing times. There have been several keywords used to search papers on
artificial intelligence and finance, such as artificial intelligence, corporate finance, digital
finance technology, etc. (Smith, 2015).

Table 1: Journal and Publisher Distribution

Article Name Author(s) Journal Publisher Year Impact
Factor
1 A comparative Arash Neural Comput & Neural Comput & 2010 92
survey of artificial Bahrammirza Application Application
intelligence ee
applications in
finance: artificial
neural networks,
expert system and
hybrid intelligent
systems
2 Financial Time Bjoern European European 2010 100
Series Forecasting Krollner, symposium on symposium on
with Machine Bruce artificial neural artificial neural
Learning Vanstone, networks: networks:
Techniques: A Gavin Finnie Computational and Computational and
Survey machine learning machine learning
3 Fintech Risk Paolo Giudici Speciality Grand Speciality Grand 2018 83
Management: A Challenge Article Challenge Article
Research
Challenge for
Artificial
Intelligence in
Finance
4 Assessing Bank Meryem University of Bath University of Bath 2009 93
Performance with Duygun School of School of
Operational Fethi, Fotios Management Management
Research and Pasiouras
Artificial
Intelligence
Techniques: A
Survey
5 Zero Intelligence in Dan Ladley Leeds University Leeds University 2009 94
Economics and Business School Business School
Finance
6 Using a fuzzy G.T.S. Ho, Expert Systems with Expert Systems with 2012 95
association rule W.H. Ip, C.H. Applications Applications
mining approach to Wu, Y.K. Tse
identify the

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financial data
association
7 Some Financial Larry D. Wall Federal Reserve Federal Reserve 2017 87
Regulatory Bank of Atlanta Bank of Atlanta
Implications of
Artificial
Intelligence
8 Natural Language Frank Z. Artificial Artificial 2018 94
Based Financial Xing · Erik Intelligence Review Intelligence Review
Forecasting: A Cambria ·
Survey. Roy E.
Welsch
9 Artificial Tom C.W. Fordham Law Fordham Law 2019 88
Intelligence, Lin Review Review
Finance, and the
Law
10 Artificial Bonnie G. The Alan Turing The Alan Turing 2019 91
Intelligence in Buchanan Institute Institute
Finance
11 Artificial Chi Chan, Asset Management, Asset Management, 2019 90
intelligence David Nayler, Banking and Banking and
applications in Jayant Insurance Insurance
financial services Raman,
Matthew
Baker
12 Neuro-Based Shorouq American Journal of American Journal of 2010 75
Artificial Fathi Eletter, Economics and Economics and
Intelligence Model Saad Ghaleb Business Business
for Loan Decisions Yaseen and Administration Administration
Ghaleb Awad
Elrefae
13 The Impacts of Cüneyt Social and Social and 2015 91
Robotics, Artificial Dirican Behavioral Sciences Behavioral Sciences
Intelligence On
Business and
Economics
14 Comparison of Ming-Chang International Journal International Journal 2010 80
Support Vector Lee and of Artificial of Artificial
Machine and Back Chang To Intelligence & Intelligence &
Propagation Neural Applications Applications
Network in
Evaluating the
Enterprise
Financial Distress
15 A Generic Philippe Universite des Universite des 2010 94
Architecture for Mathieu and Sciences et Sciences et
Realistic Olivier Technologies Technologies
Simulations of Brandouy
Complex Financial
Dynamics
16 Detection of Pediredla Decision Support Decision Support 2009 90
financial statement Ravisankar, Systems Systems
fraud and feature Vadlamani
selection using data Ravi,
mining techniques Gundumalla
Raghava Rao,
Indranil Bose
17 Deep learning for Manuel R. Universidade Universidade 2017 91
stock market Vargas, Federal do Rio de Federal do Rio de
prediction from Beatriz S. L. Janeiro Janeiro

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financial news P. de Lima

articles and
Alexandre G.
Evsukoff
18 Artificial Alexandra Hanken School of Hanken School of 2017 91
Intelligence in Zavadskaya Economics Economics
Finance:
Forecasting Stock
Market Returns
using Artificial
Neural Networks
19 Evaluation of Gang Kou, Yi Information Information 2014 90
clustering Peng, Sciences Sciences
algorithms for Guoxun
financial risk Wang
analysis using
MCDM methods
20 Digital Sascha Kraus, International Journal International Journal 2018 81
entrepreneurship: Carolin of Entrepreneurial of Entrepreneurial
A research agenda Palmer Behavior & Behavior &
on new business Research Research
models

Table 2: Articles’ Category Based on the Subject

Article Name Objectives Findings Recommendations

1 A comparative Comparative research Results show that the The results show that in
survey of artificial has been done on the accuracy of such solving financial problems,
intelligence financial markets on artificial smart especially non-linear
applications in three popular methods in dealing patterns, the precision of such
finance: artificial technologies in with financial artificial smart methods is
neural networks, artificial intelligence, problems, particularly greater than conventional
expert system and including artificial nonlinear trends, is statistical methods.
hybrid intelligent neural networks, greater than traditional
systems expert systems and statistical methods.
synthetic intelligence
systems.
2 Financial Time Current machine There is agreement Researchers believe that
Series Forecasting learning and artificial among researchers that stock index forecasts are
with Machine intelligence research stock index significant. The core
Learning experiments used to forecasting is technology for computer
Techniques: A forecast stock market significant. The education is named Artificial
Survey activity. prevailing machine Neural Networks (ANN).
learning technology in
this field is known as
Artificial Neural
Networks (ANN).
3 Fintech Risk Targeting the new The study has found The goal can be
Management: A topic of finance that financial accomplished by
Research Challenge technologies by technology evolves implementing effective risk
for Artificial defining primary and expands, making management techniques, the
Intelligence in technical forces of it competitive, and enforcement pressure of
Finance transition such as Big raising potential which can be constrained by
Data Analytics, negative effects on the system itself.
Artificial Intelligence customers and
and Blockchain investors.

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Technology.
4 Assessing Bank A comprehensive For DEA research Their viability and power
Performance with analysis of research banking and most efficiency have significantly
Operational utilizing Artificial experiments using a reduced and their results may
Research and Intelligence (A.I.) two-stage DEA, be skewed in the case of
Artificial and Operational feasibility and power DEA study banking and in
Intelligence Analysis (O.R) productivity have been most DEA studies.
Techniques: A methods for considerably reduced
Survey analyzing the and their findings may
efficiency of banks. be bias.
5 Zero Intelligence in Review the Zero Using the Zero Using the zero-intelligence
Economics and Intelligence Intelligence model in paradigm, academics, doctors
Finance methodology for conjunction with agent and computational analysts
investigating based computational were able to investigate
markets. economic techniques, issues that appeared to be
economists, extremely hard to analytically
physicians, and solve and provided
computer scientists interesting results for the
were able to economies and sciences in
investigate problems general.
that had proved very
difficult to penetrate
analytically and
generated interesting
results for the
economies and
sciences in general.
6 Using a fuzzy To identify the The case study The case study reveals that
association rule financial data indicates that the the new solution helps
mining approach to association use a approach suggested is creditors logically in actions
identify the financial fuzzy association rule a realistic way of without understanding the
data association mining approach supporting investors in underlying values of the
decisions who cannot Hang Seng index and other
recognize the secret economic indices.
principles between the
Hang Seng Index and
other economic
indexes.
7 Some Financial History of artificial The rapid The rapid development and
Regulatory intelligence with development and use use of AI technologies would
Implications of some big strengths of AI technologies will change the financial services
Artificial and weaknesses and change the financial sector and many real
Intelligence some aspects in services sector and economy sectors. If this
which AI influences many industries in the ability is understood, AI may
the future of the real economy. In the suffer significant
political and financial extent that this implications for financial
systems. potential is realized, conduct and prudential
the financial behavior supervisors.
and prudential
supervisors will have
significant
consequences for AI.
8 Natural Language Clarify the scope of The estimation of the
Based Financial NLFF analysis growth rate for each
Forecasting: A through the cycle creates an
Survey. organization and expectation of
arrangement of inflation, if the
related work methods valuation of an asset
and applications. The remains static.
survey will also Regardless of the

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increase the changing market

knowledge of NLFF's pattern, the average
progress and growth rate is always
potential points and positive.
engage in discussions
in various disciplines.
9 Artificial An analysis of the The rise and growth in The rise and development in
Intelligence, threats and financial and other financial and other artificial
Finance, and the drawbacks such as artificial intelligence intelligence will undoubtedly
Law how technological would definitely be be one of the biggest legal,
knowledge and one of the most economic and social
uncertainty can affect important legal, advances of the coming
regulation, economy business and social years. The early advances
and culture and innovations of the gave insight into the
discourage it from years to come. The enormous potential and
being carried out. early developments ability of financial artificial
provided insights into intelligence.
the immense
capabilities of
financial artificial
intelligence and the
opportunity.
10 Artificial Search for current AI The financial services There is still artificial
Intelligence in literature on research, industry is still in the intelligence in the early
Finance practice and early stages of stages of financial services
regulation artificial intelligence. industry. AI is more
Throughout banking, omnipresent in banking and
AI has become more challenges, including
omnipresent and there financial, technological,
are more problems, economic and social hurdles,
including political, are that.
cultural, economic and
social hurdles.
11 Artificial In three areas of The use of AI in There are many drawbacks to
intelligence financial services: financial services has the use of AI in financial
applications in asset management, many advantages. It services. It can improve
financial services banking and can increase efficiency efficiency and output by
insurance, this paper and productivity by dynamically detecting
is a joint effort on the automating; minimize anomalies and/or long-term
benefits and cons of psychological or changes that can not be easily
AI applications. emotional errors; and identified through
improve the quality conventional tracking
and conciseness of methods, mitigating
management psychological or emotional
knowledge by mistakes. It can also improve
identifying patterns quality and conciseness of
and/or longer-term management information.
developments, which
cannot be easily
identified using
traditional monitoring
techniques.
12 Neuro-Based To create a proposed The results show that Artificial neural networks are
Artificial model which artificial neural a good tool for evaluating
Intelligence Model identifies an artificial networks are a good loan applications in Jordan
for Loan Decisions neural network as a tool to use in the commercial banks.
method to analyze Jordanian commercial
loan applications in banks ' loan
Jordan's commercial application evaluation.
banks to facilitate

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loan decisions.
13 The Impacts of Analyze the impacts In the industrial age, Primitive mechanization of
Robotics, Artificial on industry and which humanity production processes took
Intelligence On environment of entered with steam place in the industrial age
Business and automation, artificial series long ago, that mankind joined with
Economics intelligence primitive production steam series long before.
process mechanization Mechatronic innovation,
took place. including advancements in
Developments in computer science,
internet and mobile nanotechnology,
devices are now advancement in medicine,
driving mechatronic health and wearable
research, including applications, now fuels
advancements in innovations in online and
computing, mobile devices.
nanotechnology,
advances in medicine,
safety and wireless
apps.
14 Comparison of For the assessment of BPN network is The BPN network is known
Support Vector financial distress in considered to be one as one of the most widely
Machine and Back companies, a model of the easiest and most employed neural network
Propagation Neural based on SVM with commonly used monitoring training methods.
Network in Gaussian kernel is methods for The comparable results show
Evaluating the proposed here. supervised neural that a median output gap:
Enterprise Financial network training. The higher precision and lower
Distress comparable results error rates are given by the
show that the output SVM.
difference is marginal;
the SVM provides
higher accuracy and
lower error rates.
15 A Generic Present a new highly The recent financial The recent financial crisis
Architecture for flexible financial crisis highlighted the demonstrated the need for
Realistic market agent model need for new research new tools to address the high
Simulations of in an API format tools capable of degree of complexity in the
Complex Financial addressing the field of the economy.
Dynamics economic world's high
degree of complexity.
16 Detection of To detect businesses Both strategies lacking All non-specifications
financial statement use deception on specification have methods have been
fraud and feature financial statements, been outperformed by implemented by PNN, while
selection using data using data mining PNN, although GP and the practicality and low
mining techniques methodology such as PNN have succeeded precision of GP and PNN
the Multilayer Feed others with practical surpassed some.
Forward Neural variety and limited
Network (MLFF), accuracy.
Support Vector
Machines (SVM), the
Genetic Program
(GP), Team Method
of Data Handles
(GMDH).
17 Deep learning for This article uses deep Deep learning Deep learning can identify
stock market learning approaches approaches can and analyze complex patterns
prediction from to forecast good and automatically detect and data connections in order
financial news weak index 500 and interpret complex to accelerate business
articles intraday directions patterns and data processes automatically.
with financial news associations to speed
titles and a variety of up the business

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technical indicators. process.

18 Artificial This study examined ARMA models were The best approach for
Intelligence in different applications found to be the best minimizing prediction errors
Finance: Forecasting for artificial way to minimize was identified for ARMA
Stock Market intelligence in the prediction errors, models, while networks are
Returns using field of finance. whereas networks are often more accurate for
Artificial Neural often more reliable to predicting paths or symbols.
Networks predict path or
symbol.
19 Evaluation of Present a MCDM- The results show the The results show the efficacy
clustering based approach in the reliability of MCDM of MCDM approaches for
algorithms for financial risk approaches when clustering algorithm research
financial risk analysis, which analyzing clustering and suggest that repeated
analysis using classifies a range of algorithms and say clustering solutions lead to
MCDM methods common clustering that repetitive good 2-way clustering
algorithms. clustering solutions for solutions for selected
the chosen financial financial risk sets.
risk data sets leads to
good 2-way clustering
solutions.
20 Digital Gather cutting-edge Six sources of work on The study has identified and
entrepreneurship: A modern technology digital discusses six lines of analysis
research agenda on literature and provide entrepreneurship have on digital entrepreneurship,
new business an up-to-date been described and based on systematic review
models overview of key addressed, centered on of literature: digital business
themes and a systematic literature models; digital business
approaches explored review: digital processes; network strategies;
in the relevant business models; digital ecosystems; and
literature. digital business innovation in business
processes; network education and social
strategies; the digital technology.
ecosystem; corporate
education and social
technology enterprise.

Limitation of the study

This study as a whole has certain limitations and its methodology in particular. For instance,
creativity and intuition are limited. It can also neglect significant "brown literature," for
example studies. Throughout fact, it also restricts references to their transparency. In
comparison, the keywords used could have produced better performance. In comparison, this
study is based on the specific "keyword" index.

Results and Discussion

The use of computers and algorithms to enhance and simulate human intelligence consists of
artificial intelligence (AI). Using large amounts of data and current statistic techniques, AI
allows the predictive pattern recognition to provide the' best guess' solution to specific and
definitive problem sets. It's a machine to optimize essentially. The analysis relies not on

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machine innate intelligence, but on data provided to a computer program ( Chan, Nayler,
Raman, & Baker, 2019).
Artificial intelligence (AI) is already a powerful tool widely used in financial services. If
companies use it with sufficient care, caution, and care, it will have an immense potential for
positive impact ( Eletter, Yaseen, & Elrefae, 2010). The study addresses a number of specific
technologies such as risk management, alpha generation, and asset management stewardship,
chatbots and automated helpers, underwriting, raise of the connection boss, identification of
fraud and banking algorithms ( Eletter, Yaseen, & Elrefae, 2010).
In recent years, Artificial Intelligence has made several advances that have allowed apps for
financial professionals to be developed, which could, or is likely to, disrupt the financial
sector. It is therefore believed that AI will substitute not only human capital in whole or in
part but also improve performance beyond the human level (Fethi & Pasiouras, 2009).
AI is used for the identification of phenomena. Pattern recognition facilitates the detection of
comportments that vary from normal patterns. For example, AI may be used to detect and
send warnings to money laundering, security threats, irregular financial arrangements, and
illegal transactions. It is used to build maximum investment strategies ( Chan, Nayler,
Raman, & Baker, 2019). There are now more and more robot consulting services that
automate portfolio management recommendations for individual investors. AI's other use is
in finance algorithmic commerce, systems that integrate information on changing market
conditions and price levels through the use of proprietary algorithms, allowing automatic
trades quite quickly. Trades are often conducted so fast that the word 'high-frequency trading'
has been taken up (Kraus & Palmer, 2018).
The use of AI in financial services has many advantages. It can increase efficiency and
productivity through automation; minimize mistakes induced by psychological or emotional
factors; and strengthen management information's accuracy or conciseness by detecting
patterns or longer-term developments that are not easily identified by existing monitoring
methods (Buchanan, 2019). Such requirements are particularly valid where legislation, like
the Financial Instrument Directive II for the European Union Markets (MiFID II), expands
senior management's obligations for analysis and takes greater data from the business into
account (Ho, Ip, Wu, & Tse, 2012).
Another primary use of AI is in the processing of text, news and semantic syntax. AI uses
automatically "interpreting" and evaluating texts such as papers, articles, social media and
material. It will be extremely important for the future development of financial systems,
because in a few seconds AI computers can absorb all relevant information and news while

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people will take plenty of hours to handle all the details which can affect inventory
performance. Data mining facilitates estimation, predictive activity and price level analysis in
market data. Predictions and findings can also be included in legislative and structural
adjustments (Kraus & Palmer, 2018).
The use of AI technologies by the previous methodology, Text mining, is often viewed as a
sub-set in a market sentiment analysis. Market sentiment has recently grown with the
extensive development of social media platforms and the creation of large data sweatshops (
Eletter, Yaseen, & Elrefae, 2010). The growing pool of Big Data from the web and social
networking interactions provides fascinating new ways to study the conduct of market
participants. First of all, the comprehensive sentiment analysis of social media content has
been found to increase the predictability of future outcomes for a range of elections.
Likewise, several other studies linked the number of online searches for a specific topic to
early economic activity (Krollner, Vanstone, & Finnie , 2010).
The further successful application of AI could result from credit assessments such as credit
risk analysis, rating and score rates, bond rates. Various experiments have shown a greater
degree of accuracy of credit judgments and estimation of defaults in the use of artificial
neural networks (Zavadskaya, 2017). Established by the former CIO Douglas Merrill of
Google, ZestFinance has created a software system that enables better and more effective
engagement between borrowers and lenders. Conventional banking systems have not changed
in 50 years, despite fewer data points, less than 50 still being implemented and often biased
decisions taken. Through ZestFinance's ZAML, millions of new customers have been
identified using a number of Big Data Data points and the collateral search will be stopped.
Based on years of research, they argue that there is not a single breakthrough in the loan
analysis. Thus, by using thousands of data points ZAML can help better identify better
borrowers. It also helps to remove partialities. When an individual is late and takes longer,
the Founder indicates that he is not always a bad borrower, and he was surprised to find that
other things lay behind the probability of a human default. This is particularly relevant for
young people with little or no credit experience that mainstream companies usually try to
avoid. However, they suggest ZAML methods to crack the ' black box ' of machine learning,
which describes just how the tests are produced and offer candidates legal information in the
adverse event (Buchanan, 2019).
However, in AI applications, if organizations do not exercise sufficient care and prudence,
they face potential problems. These include prejudice in materials, procedures, and outcomes
for consumer identification and credit score, as well as due diligence in the supply chain. AI

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analytics customers must be fully aware of the evidence used to prepare, check, retrain,
update and use their AI programs. This is relevant where third party analytics are offered or if
private analytics are based on data and services supported by third parties (Kou, Peng, &
Wang, 2014).
The suitability to use large data in consumer accounts and credit rating is also a cause for
concern. A UK insurer, for example, scrapped a program for assessment for the first time car
owners to drive safely in November 2016, utilizing social media posts to evaluate their
personality characteristics and determine the level of their insurance premiums. The social
media service provider in question stated that the initiative violated its privacy policy, which
states that data should not be used to make' eligibility decisions, including whether to agree to
or refuse an application or to charge for a loan the amount of interest (Buchanan, 2019).
In addition to carrying reputational risks, these concerns often have juridical and financial
consequences. As an example, the GDPR grants EU citizens the right to access information,
right to rectification, right to travel, right to oblivion, right to limit their data processing and
right to restrict profiling. However, it is unclear how easily people can opt-out for customer
profiling from sharing their data. There is also confusion as to if opting out will impact the
credit rating of people, which may influence the price and availability of insurance products
to apply for loans (Kou, Peng, & Wang, 2014).
Fines and legal cases relating to discrimination and the opacity of AI applications have
already been introduced. In October 2018, one of Britain's largest insurers charged £ 5.2
million over the inadequate management of a third-party provider by the Financial Conduct
Authority (FCA)–one of the highest penalties for an official partnership breach. FCA said
that the overreliance of the insurer on the software for voice analysis led to some claims that
were unfairly declined or not properly investigated ( Chan, Nayler, Raman, & Baker, 2019).
Separately, the first legislation against investment losses incurred by automated machines is
scheduled for May 2020. An activist made a complaint in conjunction with a supercomputer
intended to use Online Sources to gauge customer sentiments and to forecast a US market
future against a UK investment advisor (Lin T. C., 2019).
In the financial services industry, artificial intelligence persists in the early days. In banking,
AI is omnipresent and there are more obstacles, including legal, political, economic and
social barriers. The global financial ecosystem is also continuing to be subject to new
complexities (Giudici, 2018). With increasing availability of data and increasing computer
power, AI programs get more complicated. But AI, ML, DL, and previous developments are
so different that they can upgrade the financial laws. This question is raised in a compelling

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 15

2018 Financial Times article. Depreciation, for example, accounted for about one-third of
global business cash flows in 2017. But what happens when an AI computer becomes smarter
in the long run? The opposite of decay is machine learning by definition. So if an element is
used to become more expensive, it should be adversely affected. This would mean a
significant increase in income for certain technology companies ( Chan, Nayler, Raman, &
Baker, 2019).
In combination with artificial intelligence and the Internet of Things (IoT), physical things
will become more adaptive and responsive and will extend their useful lives. In addition to
big data, AI is viewed as a technique that can deliver enormous analytical power in the
financial services sector. Nonetheless, there are still many threats to be discussed. In financial
crisis scenarios many AI techniques remain untested (Buchanan, 2019).
Many situations have arisen in which financial firms ' computers appear to be working in an
unpredictable way, which has triggered failures and flash crashes, in particular, the Pound
flash crash in 2016 after the Brexit referendum. This needs more powerful technologies to be
built so that people can use these devices securely, efficiently and quickly. There is still a lot
to be done. Further research on AI learning and knowledge is urgently needed. Late Stephen
Hawking summed up: "The rise of strong AI will be the best or the worst thing ever for
mankind ( Xing, Cambria, & Welsch, 2018).

Conclusion
The use of machines and algorithms to improve and emulation of human intelligence is
Artificial Intelligence (AI). AI enables the identification of adaptive trends across large data
volumes and modern statistical methods to address a narrowly defined and permanent
problem set. It is basically an optimizer.
The analysis showed that Artificial Intelligence has made numerous advances in the last few
years, which have enabled applications for professionals in finance to be produced which
could or would, potentially, disrupted the finance sector. Therefore, it is believed that AI
could not only replace human resources fully or partially but also improve performance
beyond human standards. In companies around the world, there are a number of its
applications.
AI was found to be used for the identification of phenomena. It is used to build effective
investment strategies. The other application of AI in finance is algorithmic trading, systems

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 16

that incorporate knowledge about changing market conditions and price levels using
proprietary algorithms to make automated trades very rapid.
The syntax study of text processing, news and semantics is further significant use of AI. AI is
used for the intelligent reading and interpretation of data, including papers, articles, social
media and material. This is extremely significant if the AI system reads in a matter of
seconds when it requires several hours to do so and still cannot provide ALL details that
might influence the specific performance of the product. The development of investment
services in the future is important. The approach of data mining facilitates the study of market
data, the forecast behavior and price level. It can also provide for the forecasts and model
performance of legislative and structural development.
In the market feeling analysis, AI's use steams out of previous applications, text mining and is
often considered as its sub-set. Recent times have seen the extensive development of social
networking platforms and the processing of numerous data. The increasing array of "big data"
that results from individual internet experiences and various social networking creates
fascinating new ways of behavior research. For example, a quantitative analysis of the
content of social media has shown that the outcome of several elections in the forthcoming
elections is more predictable. Additionally, several additional studies related to the number of
online inquiries to a certain subject with a new business.
Further efficient AI deployment could be given by financial indicators such as credit risk
calculation, credit rating and efficiency, bond rating, etc. Some reports suggest that the use of
artificial neural networks increases the funding of businesses as the risk appraisal of ANN
and forecasts of bankruptcy are more reliable. Founded by former Google CIO Douglas
Merrill, ZestFinance is an advanced machine learning system that enables a better and more
efficient borrower-lender relationship.
Although not all companies are ready, in asset management, banking, insurance and other
areas artificial intelligence is a growing business priority in the financial services industry.
This sector generally recognizes the strategic nature of AI and players are already investing
heavily and channeling significant resources to the space to stay up to or be able to compete.
This paper has presented a multi-stakeholder perspective to help entrepreneurs navigate the
complexities of adopting AI and supervising priorities when using it. Although AI can be
used in several respects, the market has to explore what it actually entails.
Business leaders will challenge, evaluate their goals and determine the importance of their AI
projects outside technologies to differentiate between fact and exaggeration. AI use is
growing exponentially, with strong benefits and even unforeseeable hurdles. It impels leaders

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to create a better understanding of technology and to establish a clear and accountable

direction in which AI can be incorporated effectively into their business models and wider
strategic goals.
In consideration of the financial consequences, businesses can provide a sufficient
understanding of AI and other technologies used in the industry by the senior management
and the board to provide effective control. This is particularly important because the board
members need to track significant issues that affect the long-term value of a company.
Throughout compliance with the Corporate Governance Code, the Board is' required to
determine the nature and scale of the major risks that it intends to take throughout order to
achieve its strategic objectives.'
Companies around the globe should maintain sound risk management and internal control
systems to ensure a sufficiently current risk framework is established, monitored and
communicated appropriately. AI decision making, execution, and use shall be conducted
within a framework of risk management that identifies business changes. It will include four
main activities: risk recognition, risk assessment, risk mitigation, and risk control–whether
the system is focused on the ISO, the funding organizations ' committee and another standard.
Early intervention, preparedness for accidents, crisis response strategies and preparation
should support this strategy.

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 18

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Additional Readings

Nobanee, H., Ellili, N. O. (2016). Corporate Sustainability Disclosure in Annual Reports:

Evidence from UAE Banks: Islamic versus Conventional. Renewable & Sustainable Energy
Reviews, 55, March, pp 1336-1341.

Alshehhi, A., Nobanee, H., Khare, N. (2018). The Impact of Sustainability Practices on
Corporate Financial Performance: Literature Trends and Future Research Potential.
Sustainability, 10 (2) pp 494-519.

Al Nuaimi, Aysha and Nobanee, Haitham, Corporate Sustainability Reporting and Corporate
Financial Growth (October 19, 2019). Available at SSRN: https://ssrn.com/abstract=3472418

Almansoori, Alia and Nobanee, Haitham, How Sustainability Contributes to Shared Value
Creation and Firms’ Value (October 19, 2019). Available at
SSRN: https://ssrn.com/abstract=3472411

Al Hammadi, Fatema and Nobanee, Haitham, Sustainability and Corporate Governance: A

Mini-Review (December 9, 2019). Available at
SSRN: https://ssrn.com/abstract=3500885 or http://dx.doi.org/10.2139/ssrn.3500885

Al Muhairi, Mariam and Nobanee, Haitham, Sustainable Financial Management (October 19,
2019). Available at SSRN: https://ssrn.com/abstract=3472417

Al Hammadi, Tahani and Nobanee, Haitham, FinTech and Sustainability: A Mini-Review

(December 9, 2019). Available at
SSRN: https://ssrn.com/abstract=3500873 or http://dx.doi.org/10.2139/ssrn.3500873

Alhadhrami, Ahmed and Nobanee, Haitham, Sustainability Practices and Sustainable

Financial Growth (October 19, 2019). Available at SSRN: https://ssrn.com/abstract=3472413

Electronic copy available at: https://ssrn.com/abstract=3540140

 21

Al Breiki, Mariam and Nobanee, Haitham, The Role of Financial Management in Promoting
Sustainable Business Practices and Development (October 19, 2019). Available at
SSRN: https://ssrn.com/abstract=3472404

AlFalahi, Latifa and Nobanee, Haitham, Conceptual Building of Sustainable Economic

Growth and Corporate Bankruptcy (October 19, 2019). Available at
SSRN: https://ssrn.com/abstract=3472409

Al Ahbabi, Al Reem and Nobanee, Haitham, Conceptual Building of Sustainable Financial

Management & Sustainable Financial Growth (October 19, 2019). Available at
SSRN: https://ssrn.com/abstract=3472313

Alkaabi, Hamda and Nobanee, Haitham, A Study on Financial Management in Promoting

Sustainable Business Practices & Development (October 19, 2019). Available at
SSRN: https://ssrn.com/abstract=3472415

Electronic copy available at: https://ssrn.com/abstract=3540140