In the United States, artificial intelligence (AI) has become a transformative force in the business analytics area related to financial risk assessment for banking and insurance industries. The aim of this research is to assess adoption, effectiveness and challenges of AI driven risk assessment models, by analyzing data collected through a survey, which was distributed to 200 financial professionals across the U.S. According to the findings, AI plays an important role in increasing the accuracy of fraud detection, reducing credit risk, predicting market risk, minimizing operational risk and other decisions and optimizing cost efficiency at the financial institutions. The adoption of AI technology in improving the efficiency of the pharmaceutical industry is hindered by some key barriers such as concerns about data privacy, compliance regulations, high implementation costs and shortage of AI specialists. According to the results, financial institutions need to expand governance frameworks to ensure the regulatory alignment and ethics in using AI in a transparent way while maintaining safe risk assessment model. The contribution of this study to the current debates on AI and finance risk management, as well as implications for both the policymakers and financial industry practitioners, might include practical advice and recommendations to financial institutions and researchers on better integrating AI in banking and insurance risk assessment systems.

Artificial intelligence, business analytics, financial risk assessment, banking

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