Artificial Intelligence in Financial Decision Making: A Study of User Awareness, Adoption, and Perceptions

Abstract

Artificial Intelligence (AI) has become a game-changing technology in finance. It greatly affects how financial institutions and individuals make decisions. By integrating AI into banking, investment management, insurance, digital payments, and advisory services, organizations have improved decision-making in terms of accuracy, efficiency, and speed. AI technologies like machine learning, predictive analytics, robo-advisors, and fraud detection help institutions examine large amounts of data, spot patterns, assess risks, and offer tailored financial solutions. As AI advances, it's crucial to understand users' awareness, use, and thoughts about these technologies for the ongoing growth of the financial sector. This study aims to look at awareness, use, benefits, challenges, and the future of Artificial Intelligence in making financial decisions. It uses a descriptive research design with both primary and secondary data. We collected primary data from 100 respondents through a structured questionnaire using convenience sampling. Secondary data came from books, research articles, journals, reports, and other trustworthy sources. We analyzed the gathered data using percentage analysis and presented it in tables and graphs to show respondents' views. The findings show that most respondents are aware of AI applications in financial services and often use AI-enabled platforms for banking, investments, and digital transactions. Many believe that AI improves financial decision-making by increasing accuracy, reducing human errors, enabling quicker decisions, and enhancing customer experience. Investment management, fraud detection, and financial forecasting were highlighted as the main areas where AI has the most significant impact. However, respondents also raised concerns about data privacy, cybersecurity, ethical issues, and limited human judgment in AI-driven financial systems. The study concludes saying that Artificial Intelligence is now a vital tool for modern financial decision-making and will continue to influence the financial industry’s future. The study suggests that financial institutions should strengthen cybersecurity, improve transparency in AI systems, promote responsible governance, and raise customer awareness to ensure ethical, secure, and sustainable use of AI-driven financial services.