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Artificial intelligence applications, financial integration, and regional criminal risk

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  • Fan, Ting
  • Zhao, Xuejun

Abstract

This paper systematically examines the intrinsic relationship and mechanism among artificial intelligence application, financial inclusion, and regional criminal risk by utilizing relevant data from Chinese provinces and listed companies from 2011 to 2023. The research findings reveal that the deep application of artificial intelligence significantly curbs the rise of regional criminal risk; a higher degree of financial inclusion further contributes to reducing the incidence of regional criminal offenses; moreover, financial inclusion plays a significant moderating role in the impact of artificial intelligence on criminal risk. In addition, there is notable heterogeneity in the effects of artificial intelligence application on criminal risk across different regions (such as eastern, central, and western China) and varying levels of urbanization. These findings provide empirical support and policy implications for promoting the coordinated development of intelligent governance and regional security.

Suggested Citation

  • Fan, Ting & Zhao, Xuejun, 2025. "Artificial intelligence applications, financial integration, and regional criminal risk," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s154461232501445x
    DOI: 10.1016/j.frl.2025.108190
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    References listed on IDEAS

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    1. David Mhlanga, 2021. "Financial Inclusion in Emerging Economies: The Application of Machine Learning and Artificial Intelligence in Credit Risk Assessment," IJFS, MDPI, vol. 9(3), pages 1-16, July.
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    4. Nir Kshetri, 2021. "The Role of Artificial Intelligence in Promoting Financial Inclusion in Developing Countries," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 24(1), pages 1-6, January.
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    1. Muhammad Haroon Rasheed & Jamshed Khalid & Muhammad Shahid Rasheed, 2026. "Artificial intelligence in finance: unveiling foundations, themes, and future research agendas," Future Business Journal, Springer, vol. 12(1), pages 1-18, December.

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