IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vxviy2024i2p63-75.html
   My bibliography  Save this article

Artificial Intelligence Waves In Financial Services Industry: An Evolution Factorial Analysis

Author

Listed:
  • Ardita TODRI

    (Associate Professor, University of Elbasan)

  • Petraq PAPAJORGJI

    (Professor, Proinfinit Consulting Tirana)

Abstract

Artificial intelligence (AI) has gained prominence in the financial industry. Thus, it is particularly interesting to address the financial services where AI-based systems are mainly used, the reasoning for their use, risks, and evolution potentialities. This research explores the viewpoints of professionals inside and outside the European Union area on AI-based services in the financial industry, aiming to analyze their current position and conceptualize their evolution through an integrative method study. The analyzed data pertain to 523 professionals (out of 740 contacted) who have compiled an online questionnaire related to four study pillars, such as AI-based systems use in financial services (A), the reasoning for their use (B), their risks (C) and evolution potentialities (D). Then, we examine how AI-based systems impact the evolution of AI in financial services (D) use in financial services (A), the reasoning for their use (B), and their risks (C). The study argues that to encourage a sustainable future of AI evolution in the financial sector, the risk management approach is a crucial aspect that regulatory bodies should consider accurately. According to the field professionals' collected opinions in this study referring to their gender and age, special attention should be paid to these risks: AI limitations in forecasting market uncertainties, their lack of ethical values and explainability, as well as their no-audited versions. Therefore, academia and field professionals recommend the establishment of regulatory standards that, compared to risk management approaches, leave enough space even for AI innovation.

Suggested Citation

  • Ardita TODRI & Petraq PAPAJORGJI, 2024. "Artificial Intelligence Waves In Financial Services Industry: An Evolution Factorial Analysis," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 63-75, June.
    • Handle: RePEc:hrs:journl:v:xvi:y:2024:i:2:p:63-75
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/December_2024/05.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lee, In, 2021. "Cybersecurity: Risk management framework and investment cost analysis," Business Horizons, Elsevier, vol. 64(5), pages 659-671.
    2. Liming Brotcke, 2022. "Time to Assess Bias in Machine Learning Models for Credit Decisions," JRFM, MDPI, vol. 15(4), pages 1-10, April.
    3. Gil Cohen, 2022. "Algorithmic Trading and Financial Forecasting Using Advanced Artificial Intelligence Methodologies," Mathematics, MDPI, vol. 10(18), pages 1-13, September.
    4. Gandomi, Amir & Haider, Murtaza, 2015. "Beyond the hype: Big data concepts, methods, and analytics," International Journal of Information Management, Elsevier, vol. 35(2), pages 137-144.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dimitrios TSIOTAS & Elias GIANNAKIS & Christos PAPADAS, 2025. "A Modularity Decomposition Model Of Evolving Input-Output Sectorial Structure," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 107-133, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julia Eichholz & Thorsten Knauer & Sandra Winkelmann, 2023. "Digital Maturity of Forecasting and its Impact in Times of Crisis," Schmalenbach Journal of Business Research, Springer, vol. 75(4), pages 443-481, December.
    2. Kaur, Harpreet & Gupta, Mahima & Singh, Surya Prakash, 2024. "Integrated model to optimize supplier selection and investments for cyber resilience in digital supply chains," International Journal of Production Economics, Elsevier, vol. 275(C).
    3. Alexander Brunhuemer & Lukas Larcher & Philipp Seidl & Sascha Desmettre & Johannes Kofler & Gerhard Larcher, 2022. "Supervised Machine Learning Classification for Short Straddles on the S&P500," Risks, MDPI, vol. 10(12), pages 1-25, December.
    4. Ahmad Ibrahim Aljumah & Mohammed T. Nuseir & Md. Mahmudul Alam, 2021. "Traditional marketing analytics, big data analytics and big data system quality and the success of new product development," Post-Print hal-03538161, HAL.
    5. Cano-Marin, Enrique & Mora-Cantallops, Marçal & Sánchez-Alonso, Salvador, 2023. "Twitter as a predictive system: A systematic literature review," Journal of Business Research, Elsevier, vol. 157(C).
    6. de Camargo Fiorini, Paula & Roman Pais Seles, Bruno Michel & Chiappetta Jabbour, Charbel Jose & Barberio Mariano, Enzo & de Sousa Jabbour, Ana Beatriz Lopes, 2018. "Management theory and big data literature: From a review to a research agenda," International Journal of Information Management, Elsevier, vol. 43(C), pages 112-129.
    7. Amiri, Babak & Karimianghadim, Ramin, 2024. "A novel text clustering model based on topic modelling and social network analysis," Chaos, Solitons & Fractals, Elsevier, vol. 181(C).
    8. Rajat Kumar Behera & Pradip Kumar Bala & Arghya Ray, 2024. "Cognitive Chatbot for Personalised Contextual Customer Service: Behind the Scene and beyond the Hype," Information Systems Frontiers, Springer, vol. 26(3), pages 899-919, June.
    9. Wang, Le & Yan, Jie & Lin, Jun & Cui, Wentian, 2017. "Let the users tell the truth: Self-disclosure intention and self-disclosure honesty in mobile social networking," International Journal of Information Management, Elsevier, vol. 37(1), pages 1428-1440.
    10. Lutfi, Abdalwali & Alrawad, Mahmaod & Alsyouf, Adi & Almaiah, Mohammed Amin & Al-Khasawneh, Ahmad & Al-Khasawneh, Akif Lutfi & Alshira'h, Ahmad Farhan & Alshirah, Malek Hamed & Saad, Mohamed & Ibrahim, 2023. "Drivers and impact of big data analytic adoption in the retail industry: A quantitative investigation applying structural equation modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    11. Ariyaluran Habeeb, Riyaz Ahamed & Nasaruddin, Fariza & Gani, Abdullah & Targio Hashem, Ibrahim Abaker & Ahmed, Ejaz & Imran, Muhammad, 2019. "Real-time big data processing for anomaly detection: A Survey," International Journal of Information Management, Elsevier, vol. 45(C), pages 289-307.
    12. Shobhana Chandra & Sanjeev Verma, 2023. "Big Data and Sustainable Consumption: A Review and Research Agenda," Vision, , vol. 27(1), pages 11-23, February.
    13. Jimenez-Marquez, Jose Luis & Gonzalez-Carrasco, Israel & Lopez-Cuadrado, Jose Luis & Ruiz-Mezcua, Belen, 2019. "Towards a big data framework for analyzing social media content," International Journal of Information Management, Elsevier, vol. 44(C), pages 1-12.
    14. Pushpalika Chatterjee, 2024. "Proactive Infrastructure Reliability: AI-Powered Predictive Maintenance for Financial Ecosystem Resilience," Journal of Artificial Intelligence General science (JAIGS) ISSN:3006-4023, Open Knowledge, vol. 7(01), pages 291-303.
    15. Tanzeela AQIF & Abdul WAHAB, 2022. "Reshaping The Future Of Retail Marketing Through Big Data: A Review From 2009 To 2022," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 14(3), pages 5-24, September.
    16. Ardakani, Omid M. & Dalko, Viktoria & Shim, Hyeeun, 2025. "Information loss from perception alignment," International Review of Economics & Finance, Elsevier, vol. 97(C).
    17. Agbodoh-Falschau, Kouassi Raymond & Ravaonorohanta, Bako Harinivo, 2023. "Investigating the influence of governance determinants on reporting cybersecurity incidents to police: Evidence from Canadian organizations’ perspectives," Technology in Society, Elsevier, vol. 74(C).
    18. Slapničar, Sergeja & Axelsen, Micheal & Bongiovanni, Ivano & Stockdale, David, 2023. "A pathway model to five lines of accountability in cybersecurity governance," International Journal of Accounting Information Systems, Elsevier, vol. 51(C).
    19. Božič, Katerina & Dimovski, Vlado, 2019. "Business intelligence and analytics for value creation: The role of absorptive capacity," International Journal of Information Management, Elsevier, vol. 46(C), pages 93-103.
    20. Douglas P. Hannah & Ron Tidhar & Kathleen M. Eisenhardt, 2021. "Analytic models in strategy, organizations, and management research: A guide for consumers," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 329-360, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:xvi:y:2024:i:2:p:63-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dimitrios K. Kouzas (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.