Transforming Banking with Artificial Intelligence Applications, Challenges, and Implications

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dc.contributor.authorMucsková, Monika
dc.coverage.issue42cs
dc.coverage.volumeXVIIIcs
dc.date.accessioned2025-01-24T13:32:52Z
dc.date.available2025-01-24T13:32:52Z
dc.date.issued2024-12-13cs
dc.description.abstractPurpose of the article: The purpose of this article is to provide a comprehensive analysis of the role of artificial intelligence (AI) in the banking sector, focusing on its applications, challenges, and implications. By synthesizing existing research and empirical studies, the article aims to inform researchers about the transformative potential and inherent challenges of AI-driven innovation in banking. Methodology/methods: Using a systematic review approach, the relevant literature on AI integration in banking was identified from electronic databases and leading corporate research departments, ensuring a synthesis of scholarly and industry perspectives. Scientific aim: With limited academic research on AI in banking, this study aims to shed light on its applications, challenges, and implications. Findings: The integration of AI in the banking sector has significantly transformed various operational areas, including customer interactions, risk management, compliance, and operational efficiency. AI applications, such as chatbots and smart virtual assistants, have enhanced customer service by offering personalized, 24/7 support, and have demonstrated significant cost and revenue benefits. AI-driven credit scoring and fraud detection have improved risk assessment and mitigation, enabling more precise and informed decision-making. However, AI adoption faces challenges such as high computational costs, data quality issues, the "curse of recursion" where models trained on AI-generated data degrade, and the need to balance trust in AI outputs with their reliability. Furthermore, regulatory considerations play a crucial role in AI integration. While the European Union's AI Act aims to ensure the ethical use of AI in finance, it also presents challenges related to compliance and potential over-regulation. Conclusions: In conclusion, the integration of AI in the banking sector has revolutionized customer service, risk management, compliance, and operational efficiency. However, the adoption of AI also raises concerns about data privacy, security, and the need for regulatory frameworks to ensure ethical use. As AI continues to evolve, it will be crucial for banks to balance technological innovation with responsible practices to maximize benefits and mitigate risks.en
dc.formattextcs
dc.format.extent21-37cs
dc.format.mimetypeapplication/pdfen
dc.identifier.citationTrendy ekonomiky a managementu. 2024, XVIII, č. 42, s. 21-37. ISSN 1802-8527.cs
dc.identifier.doi10.13164/trends.2024.42.21cs
dc.identifier.issn1802-8527
dc.identifier.urihttps://hdl.handle.net/11012/249876
dc.language.isoencs
dc.publisherVysoké učení technické v Brně, Fakulta podnikatelskács
dc.relation.ispartofTrendy ekonomiky a managementucs
dc.relation.urihttps://journals.vut.cz/index.php/trends/article/view/609cs
dc.rightsCreative Commons Attribution 4.0 International licensecs
dc.rights.accessopenAccessen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.subjectartificial intelligence (AI)en
dc.subjectbanking sectoren
dc.subjectfraud detectionen
dc.subjectanti-money laundering (AML)en
dc.subjectregulatory complianceen
dc.titleTransforming Banking with Artificial Intelligence Applications, Challenges, and Implicationsen
dc.type.driverarticleen
dc.type.statusPeer-revieweden
dc.type.versionpublishedVersionen
eprints.affiliatedInstitution.facultyFakulta podnikatelskács
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Číslo 42, ročník XVIII