Authors : Nihar Malali

Volume/Issue : Volume 10 - 2025, Issue 2 - February

Google Scholar : https://tinyurl.com/yc4cvhpp

Scribd : https://tinyurl.com/cn5tnak7

DOI : https://doi.org/10.5281/zenodo.14881349

Abstract : AI has quickly evolved financial services and brought significant changes in trade, fraud detection, customer service, and personal financial planning. However, its adoption raises various moral concerns, especially on issues concerning bias of the related algorithms, data privacy, responsibility and openness. This paper looks at some of the possible ethical issues and regulatory issues in the area of AI and financial services. The review brings attention to changes in AI application in the domain of financial services and calls for proper security measures in data, fair Al, and clearly defined responsibility area. Some literature is reviewed to illustrate that AI, on the one hand, facilitates data processing and the refinement of business processes but, on the other hand, creates multifaceted ethical challenges. Moreover, the paper describes the ways of legal responsibility for AI systems, as well as the potential solutions to such issues. The review also provides the limitations of existing ethical frameworks and future research directions for further developing integrated and well-balanced AI ethical, legal and systematic opportunities and threats. Future research in the sociotechnical perspective of AI should then center on refining further and inclusive of current ethics that have been identified to explain different effects of AI in the financial services sector.

Keywords : Artificial Intelligence (AI), Financial Services, AI Ethics, Ethical Frameworks, Financial Regulation, Perspective, AI Regulation, Financial Technology, AI in Investment Banking, AI in Consumer Banking.

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