Abstract: A major paradigm shift in the provision and consumption of financial services has been brought about by the integration of Artificial Intelligence (AI) into the financial technology (fintech) industry. In-depth examination of the advantages and difficulties of implementing AI in fintech is given in this paper, which focuses on important technologies like robotic process automation (RPA), natural language processing (NLP), and machine learning. Financial institutions can now use AI to improve fraud detection and risk assessment accuracy, automate repetitive tasks, and customize customer experiences. Large-scale data availability and computing power advancements have sped up the adoption of AI, which has significantly increased customer satisfaction and operational efficiency. This paper also explores the current and future regulatory landscape surrounding AI in fintech, emphasizing the importance of developing ethical AI frameworks and global regulatory harmonization. Recommendations for financial institutions include investing in AI literacy and skills development, fostering collaboration with stakeholders, and implementing continuous monitoring and evaluation mechanisms to ensure the effectiveness and fairness of AI systems.
Keywords: Artificial Intelligence, Fintech, Efficiency, Customer Experience, Security, Data Privacy, Algorithmic Bias, Job Displacement, Regulatory Compliance, Implementation Costs
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