Abstract: Blockchain technology and artificial intelligence (AI) have been gaining much interest in the finance industry due to their potential to democratize access to financial services, especially in impoverished areas lacking traditional banking infrastructure. The current study adopts a research strategy that thoroughly examines and integrates existing literature on the convergence of AI and blockchain technologies within the banking sector. The strategy combines qualitative and quantitative methods to deliver a holistic understanding of the integration's advantages and limitations of blockchain technology and AI in banking. The data is subjected to qualitative content analysis to identify recurring themes, trends, and linkages in the literature. Blockchain technology offers inherent security features, such as encryption and cryptographic hashing, but also introduces new privacy challenges. Security and privacy issues necessitate the deployment of strong encryption protocols, access controls, and data anonymization techniques that protect sensitive data and ensure regulatory compliance. Integrating blockchain and AI offers significant opportunities for enhancing the risk management processes in supply chain finance, enabling real-time tracking, transparency, and optimization of supply chain processes. AI-driven algorithms improve fraud detection and risk management, allowing financial institutions to spot unusual trends and proactively reduce risks. This paper attempts to promote discussion on possible applications and help readers make well-informed decisions on the future of finance in a blockchain-enabled, artificial intelligence-driven world by looking at real-life instances.
Keywords: Blockchain Technology, Artificial Intelligence (AI), Finance, Risk Management, Supply Chain.
Cite:
Santosh Reddy Addula, Karthik Meduri, Geeta Sandeep Nadella,Hari Gonaygunta,"AI and Blockchain in Finance: Opportunities and Challenges for the Banking Sector", IJARCCE International Journal of Advanced Research in Computer and Communication Engineering, vol. 13, no. 2, 2024, Crossref https://doi.org/10.17148/IJARCCE.2024.13231.
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DOI:
10.17148/IJARCCE.2024.13231
