The societal impact of AI and big data in financial services

Taralkar, Jaydeep (2025) The societal impact of AI and big data in financial services. World Journal of Advanced Research and Reviews, 26 (2). pp. 554-566. ISSN 2581-9615

The financial services industry is experiencing profound transformation through artificial intelligence and big data technologies. This article examines how platforms like Cloudera enable financial institutions to harness vast data quantities, creating both opportunities and challenges for society. The integration of these technologies democratizes access to sophisticated financial tools previously limited to wealthy individuals and large corporations, with alternative data sources enabling more accurate credit scoring and personalized services for underserved populations. Simultaneously, AI-driven risk management systems strengthen market stability through enhanced predictive modeling, early warning capabilities, and network risk assessment. However, these advancements raise significant ethical considerations including algorithmic bias, privacy concerns, and opacity in decision-making processes. The article explores policy implications across regulatory frameworks, international coordination, workforce development, and digital infrastructure investment, emphasizing the need for balanced approaches that foster innovation while ensuring consumer protection and market stability.