1INTI International University, Malaysia
2Educator, M.P.S. Jugdambi, SSS, Mauritius
3Assam Down Town University, Guwahati, Assam, India
*Corresponding Author
Artificial intelligence has become an important technological innovation in the financial sector, enabling institutions to process large volumes of data, improve decision-making, and automate complex financial operations. The growing digital transformation of financial services has accelerated the adoption of intelligent technologies across banking, investment, and financial management systems. This narrative review aims to examine the role of artificial intelligence in finance by analysing its major applications, key challenges, and potential future research directions. A narrative review approach was used to examine existing academic studies on artificial intelligence in finance. Relevant literature was analysed to identify major technological developments, applications in financial services, and research gaps related to transparency, fairness, and regulatory governance. The review identifies several important applications of artificial intelligence in financial systems, including fraud detection, credit risk assessment, algorithmic trading, and customer service automation. Artificial intelligence improves predictive accuracy, operational efficiency, and risk management by analysing complex financial datasets. However, challenges remain regarding the transparency of automated decisions, potential bias in algorithmic models, and concerns about data privacy and security. Artificial intelligence has the potential to significantly transform financial services, but responsible implementation requires improved transparency, ethical governance, and stronger regulatory frameworks to ensure trustworthy and accountable financial decision-making.
Keywords: Artificial intelligence, Financial technology, Fraud detection, Credit risk, Algorithmic trading, Economic Growth
How to cite this article: Ping TS, Teck TS, Geok LS, Fernandez RT, Toh JS, Veerunjaysingh S, Prakash S. Artificial Intelligence in Finance: Applications, Challenges, and Future Directions - A Narrative Review. Int J Drug Deliv Technol. 2026;16(7s): 1021. DOI: 10.25258/ijddt.16.7s.110
Source of support: Nil.
Conflict of interest: None