The Impact of AI and machine learning on financial data processing

Jinka, Purushotham (2025) The Impact of AI and machine learning on financial data processing. World Journal of Advanced Research and Reviews, 26 (3). pp. 119-129. ISSN 2581-9615

The application of artificial intelligence and machine learning technologies is fundamentally transforming financial services, revolutionizing data processing capabilities and decision-making frameworks across the industry. This evolution from basic automation to sophisticated predictive analytics has enabled financial institutions to extract unprecedented insights from vast datasets, enhancing operational efficiency and competitive advantage. The transformation spans multiple domains, including market analytics and trading, credit assessment, sentiment analysis, portfolio management, risk detection, and regulatory compliance. Despite substantial benefits, implementation faces significant barriers including legacy system compatibility, data quality issues, ethical considerations around algorithmic bias, regulatory complexities, and talent acquisition challenges. Financial institutions achieving successful integration employ strategic approaches that balance technological innovation with governance frameworks, cross-functional collaboration, and organizational change management. As AI capabilities continue to mature, they promise further disruption to traditional financial paradigms while creating new opportunities for institutions that effectively navigate implementation hurdles and leverage these technologies for sustainable advantage.