Applications of Artificial Intelligence in Finance: Prospects, Limits and Risks

Advances in artificial intelligence (AI) highlight the potential of this technology to affect the financial sector. This article aims to identify the applications and impact of AI on the main activities of the financial sector, more particularly banking. The prospective literature review highlighted four main application themes for AI: credit risk analysis and assessment, personalization of the customer experience, risk intermediation, instantaneous resolution of combinatorial problems (nowcasting). However, the new methods and sources of data exploited by AI can give rise to numerous legal and ethical biases beyond the control of the bank. These emerging technologies, and the associated risks, therefore call for an adaptation of financial regulation to better adapt banking responsibility.