Abstract

The 21st century has witnessed accelerating growth in the utilization of digitized financial services. There is a consistent effort to simulate, augment, enhance, and replicate human intelligence using artificial technologies, to form intelligent machines. Artificial intelligence, which has its foundations in computer science, linguistics, psychology, mathematics, and philosophy has proved to be a powerful tool in financial services. Firms are now utilizing analytical tools such as machine learning and ANN to analyse data collected over time. AI enhances adaptive pattern recognition using modern statistical methods and large volumes of data to provide the 'best guess' answer to any specific and narrowly-defined problem set. AI has a high potential for positive impact when deployed with care, prudence, and diligence. This paper seeks to expound on the application of AI tools in finance and the implications of implementation to financial stability. Important considerations for AI use include benefits to clients and firms, data privacy and protection, elimination of human capital, and sustainability of financial services.