Authors: Nidhi Singh, Dr Navneet Seth
Abstract: The financial sector is undergoing a profound metamorphosis, driven by the accelerating integration of Artificial Intelligence (AI) into core decision-making processes. This paper investigates the multi-dimensional impact of AI on financial decision-making, encompassing investment analysis, credit risk assessment, fraud detection, financial forecasting, and customer service. Employing a descriptive-quantitative research design with a structured questionnaire administered to 100 respondents comprising banking professionals, financial analysts, investors, and accountants, the study deploys percentage analysis, frequency distribution, mean scoring, and Chi-Square hypothesis testing to derive empirical evidence. Findings reveal that 85% of respondents demonstrate awareness of AI-enabled financial tools, 75% affirm that AI materially elevates decision-making accuracy, and 80% express high satisfaction with AI-powered financial services. The Chi-Square test confirms a statistically significant relationship between AI adoption and financial decision-making effectiveness (χ² = 18.64, p < 0.05). Notwithstanding these benefits, data privacy concerns (35%), cybersecurity vulnerabilities (25%), and elevated implementation costs (20%) constitute critical impediments. The paper concludes that AI is not merely an operational efficiency enhancer but a strategic imperative for modern financial institutions, and advocates for responsible, ethics-driven AI governance frameworks to sustain its transformative potential.
