Artificial Intelligence in Financial Decision-Making: Transforming Modern Business Practices

International Journal of Emerging Research in Science, Engineering, and Management
Vol. 2, SI1 (2026), pp. 185–197
Proceedings of Selected Papers from the
National Conference on Emerging Trends in Commerce and Management
NCETCM-2K26
2026-03-30 to 2026-03-31
Vijayawada, Andhra Pradesh, India
Organized by Andhra Loyola College, Vijayawada, India
eISSN: 3107-9075

This work is licensed under a Creative Commons Attribution 4.0 International License .

Artificial Intelligence in Financial Decision-Making: Transforming Modern Business Practices

Chilukoti Naga Raju

Lecturer in Commerce, Government Degree College, Avanigadda, Krishna District, Andhra Pradesh, India

Abstract

Artificial Intelligence (AI) has emerged as a transformative force in financial decision-making, significantly reshaping modern business practices. The integration of advanced AI technologies such as machine learning, deep learning, and big data analytics enables organizations to efficiently process large volumes of both structured and unstructured data. This study examines the role of AI in enhancing financial decision-making processes, particularly in areas such as predictive analytics, risk assessment, fraud detection, portfolio management, and customer relationship management. The research is based on secondary data collected from academic journals, institutional reports, and relevant case studies, with a specific focus on Indian financial institutions. The findings indicate that AI substantially improves decision-making accuracy, operational efficiency, and risk management capabilities, while also enhancing customer experience and service delivery. Despite these advantages, challenges such as data privacy concerns, ethical issues, high implementation costs, and a shortage of skilled professionals continue to hinder widespread adoption. The study concludes that the strategic adoption of AI is crucial for achieving sustainable growth, improving competitiveness, and ensuring long-term success in the evolving financial landscape.

Keywords: Artificial Intelligence, Financial Decision-Making, Machine Learning, Risk Management, Fraud Detection.

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DOI: 10.66710/ijersem.v2si1.24

Open Access • Peer Reviewed Article

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This article is part of Volume 2, Special Issue 1 (May 2026)

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2026-05-18