Chapter 14: The Influence of Artificial Intelligence on Personal and Corporate Finance: A Comprehensive Literature Review with Prospects for Future Research

Purpose: The surge in utilising big data, machine learning (ML), and artificial intelligence (AI) has significantly strengthened financial systems, enhancing their robustness, safety, and fairness. AI in finance is profoundly reshaping our lives. This study investigates AI’s role in personal and corporate finance.

Methodology: A comprehensive literature review was conducted to examine studies on the application of AI in personal and corporate finance.

Findings: The financial services sector is undergoing an AI-led transformation, leveraging technologies such as deep learning, collaborative filtering, support vector machines, automation, robotic assistance, and AI-based predictive modelling. In personal finance, AI delivers personalised insights, automates procedures, detects fraud, and enhances financial literacy. It empowers individuals to manage their finances more effectively by tracking expenditures, aiding in budget management, and setting and monitoring financial goals. In corporate finance, AI aids in detecting and analysing credit risks, improving loan underwriting, and minimising financial risk. It also helps reduce financial crimes and enhances the financial performance of accounting firms. AI’s role in bookkeeping, accounting, and financial management significantly benefits entrepreneurs, business executives, investors, and bankers involved in starting and growing organisations.

Practical Implications: In personal finance, AI enhances financial planning, automates transactions, improves credit scoring, and strengthens fraud detection. In corporate finance, AI facilitates advanced risk management, precise financial forecasting, cost reduction through automation, and optimised investment strategies.