ARTIFICIAL INTELLIGENCE AND FINANCIAL DECISION MAKING: A CONCEPTUAL FRAMEWORK

Abstract

AI is quickly transforming financial services, changing the game in areas like credit scoring, algorithmic trading, risk management, and compliance. Decision-making has never been as critical as it is today because financial markets are becoming increasingly complicated. Although the financial sector is fast adopting AI, not much information has been clear on how these technologies assist, complement, or criticize human judgment in the process of making decisions. This paper is set to address this gap by creating a conceptual framework that integrates AI tools with well-known financial decision frameworks, including Behavioral Finance, Decision Support Systems (DSS), and Technology Acceptance Model (TAM). The model demonstrates the role of AI as a decision support, which is affected by other factors such as trust, perceived usefulness, and ethical considerations to influence financial outcomes. The primary value addition in this matter is a logical structure with clarity, which connects the adoption of technology with the financial decision-making pragmatically. With this model, practitioners will be able to create more transparent and ethically accountable AI-powered financial systems. On the other hand, this can be further researched by researchers in the future using surveys, experiments, and analysis of secondary data.