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Role of Artificial Intelligence in Finance: Selective Literature Review and Implications for Asia's Financial Stability

Author

Listed:
  • Yang ZHANG

    (Faculty of Business Administration, University of Macau)

  • Ziang QIU Ziang

    (Faculty of Business Administration, University of Macau)

  • Donghyun PARK

    (The South East Asian Central Banks (SEACEN) Research and Training Centre)

  • Shu TIAN

    (Economic Research and Development Impact Department, Asian Development Bank)

Abstract

This paper provides a comprehensive systematic review of the transformative impact of Artificial Intelligence (AI) on the global financial landscape. By synthesising 249 peer-reviewed studies published between 1990 and 2025, the research categorises AI’s contributions into three primary domains: asset pricing and portfolio management; financial markets and institutions; and corporate finance and governance. Furthermore, the review offers a specialised assessment of AI’s implications for financial stability within Asia. The findings reveal that while AI acts as a "stabilising intelligence" by enhancing efficiency, predictive precision, and financial inclusion, it simultaneously introduces "adaptive fragility" by concentrating market power, embedding algorithmic biases, and intensifying systemic linkages.

Suggested Citation

  • Yang ZHANG & Ziang QIU Ziang & Donghyun PARK & Shu TIAN, "undated". "Role of Artificial Intelligence in Finance: Selective Literature Review and Implications for Asia's Financial Stability," Working Papers wp61, South East Asian Central Banks (SEACEN) Research and Training Centre, revised Feb 2026.
    • Handle: RePEc:sea:wpaper:wp61
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    File URL: https://www.seacen.org/publication-doc/WP02_2026_Final.pdf
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    Keywords

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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