AI Innovation in Fintech: Status, Trends and Implications

Abstract

With the rapid development of Artificial Intelligence (AI) technology, the Financial Technology (FinTech) industry is undergoing unprecedented changes.The innovative applications of AI in the financial sector cover all aspects from intelligent risk control to intelligent investment, automated financial services and customer experience optimisation, which have greatly improved the efficiency, accuracy and security of financial services. By analysing the current situation and development trend of AI in fintech and exploring its profound impact on the financial industry, this paper reveals the key role of AI in promoting personalised, automated and intelligent financial services. Specifically, the AI-driven intelligent risk control system effectively improves the accuracy of risk identification and management, enabling financial institutions to assess customer credit risk faster and more accurately; the intelligent investment consulting system provides users with customised investment advice and optimised asset allocation solutions through data mining and machine learning, which significantly improves the return on investment; and in terms of the automation of financial services, AI technology facilitates the automation of financial services such as the JPMorgan Chase's contract review system COIN and other applications, which not only improves operational efficiency, but also effectively reduces labour costs and error rates; in terms of customer experience optimization, Citibank optimizes its customer communication strategy through AI-driven sentiment analysis, achieving a double increase in customer satisfaction and loyalty. By summarising these real-life cases and application data, this paper further analyses the effectiveness and challenges of AI application in the financial industry, especially in terms of data privacy and security risks, the balance between technology and regulation, and the shortage of technical talents. In the future, with the maturity of AI technology and its in-depth application in financial compliance and privacy protection, AI is expected to become a new engine for the development of fintech and provide a broader prospect for the intelligent transformation of the global financial industry.