Analyzing the Impact of Artificial Intelligence in the Financial Industry

Artificial Intelligence (AI) has constantly developed alongside Machine Learning, Robotics, Natural Language Processing, and other technologies. However, AI has also been utilized in the field of Financial Technology by Financial Institutions. AI has improved the services provided by Financial Technology (FinTech) industries to consumers by personalizing their offerings and simplifying the transaction process. This paper aims to provide an overview of the impact of AI on the Financial Industry and examine how GCash penetrated and dominated the Philippine Market. The research was conducted through a systematic literature review, initially gathering 21 papers, of which 15 were selected as significant to the study. These papers were then classified according to the following categories: Overview, Opportunities and Current State, Risks, and Future of AI in FinTech. The study concludes that AI has significantly impacted the financial sector, particularly in areas such as risk management, fraud detection, customer service, and investment management. Examples of how AI has benefited the financial sector include the emergence of Robo-Advisers and digital payment systems like GCash in the Philippine market. As governments, financial institutions, and consumers navigate the rapidly evolving landscape of AI in finance, the conclusions of this study will have significant implications.

I. Introduction

Since the pandemic, Artificial Intelligence (AI) improved in terms of effectiveness and efficiency, revolutionizing business processes and making operations and machines smoother [1]. Initially, AI was utilized in various technologies such as Machine Learning, Robotics, Expert Systems, and more. However, as the need for digital solutions and payment increased during the pandemic, Financial Technology (FinTech) emerged and experienced significant growth. The new generation of FinTech services integrated AI to enhance digital services provided to consumers in the market. These services included Smart Digital Currencies like Cryptocurrencies and Non-Fungible Tokens, Digital Payment Solutions, Risk and Wealth Management, Lending, and more, serving users successfully [2].