AI in Financial Technology: Enhancing Fraud Detection and Risk Management

Abstract

Artificial Intelligence (AI) is revolutionizing the financial sector by improving fraud detection, risk assessment, and customer experience. This paper explores AI-driven innovations in FinTech, including deep learning for fraud analytics, AI-powered chatbots, and algorithmic trading. We discuss the role of natural language processing (NLP) in regulatory compliance and risk management. While AI presents significant opportunities for efficiency and security, challenges such as bias in AI models, data privacy concerns, and regulatory frameworks remain critical. Our research highlights how AI is reshaping the financial industry while ensuring security and compliance.