Revolutionizing Risk Management: AI and ML Innovations in Financial Stability and Fraud Detection
DOI:
https://doi.org/10.56472/WCAI25-106Keywords:
Risk Management, Artificial Intelligence, Machine Learning, Financial Stability, Fraud Detection, Predictive Analytics, FinTechAbstract
The integration of Artificial Intelligence (AI) and Machine Learning (ML) in financial systems is revolutionizing risk management by enhancing fraud detection, ensuring financial stability, and strengthening predictive modeling. Traditional approaches to risk management and fraud detection struggle to keep up with the volume, velocity, and variety of financial data. This paper explores the application of AI and ML in detecting anomalies, preventing fraudulent transactions, and optimizing risk assessment. We highlight how supervised and unsupervised learning, natural language processing, and reinforcement learning are transforming compliance, fraud monitoring, and financial forecasting. Through a multidisciplinary lens, the paper outlines the potential of these technologies to minimize losses, improve operational resilience, and build trust in global financial markets
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References
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