Canvas by Cayla Mirjani

Personalized Overview

caylamirjani — 2025-03-17 01:25:16 UTC

The industry I chose is Finance because AI is really changing how investment firms, banks, and individuals handle money. AI is making financial processes more efficient, secure, and accurate. Another reason why I chose finance is because as an economics major with the hopes of working in the finance field, I am curious to know more about how AI will impact my future job both positively and negatively. Additionally, finance also plays an important role in everyone’s daily life. Whether it is managing personal budgets, ensuring transitions are secure, or investing in stocks. Furthermore, I am particularly interested in how AI is being used to detect fraudulent activities, as well as how it is transforming investment strategies with algorithmic trading. As someone who has shadowed people who work in the finance, business, and accounting fields, I have first-hand witnessed how AI has gradually started to impact the field. For example, one thing AI has done that has been the most interesting for me to witness is how it has started to be able to complete budgeting sheets way faster than humans. Therefore, I am eager to learn more about AI’s role in the finance field. In addition, this field is significant to me because financial decisions impact people’s security and futures. Even if you do not plan on working in the field, AI's impact on finance will ultimately impact you. AI has the ability to make banking safer and investing more accessible, but there are risks like biased lending algorithms and cybersecurity threats. These risks make me concerned, and I think it is important for me to learn them especially since I have the desire to work in this field. Overall, researching both the challenges and benefits of AI in finance will help me understand its broader implications.

Finance - AI in Fraud Detection

caylamirjani — 2025-03-17 01:33:20 UTC

Video link: https://youtu.be/UNgdIkuVC6g?si=j07qAuOWwd1azuTr

*I am putting the link here because this website will not allow me to have a picture and video on one post. Addiotnally, the three dot option did not let me embeded the video either. Therefore, I put the link here, but I also made a separate labeled post with the same video embedded*

AI has the ability to detect odd transactions and prevent financial crimes like identity theft and credit card fraud. Banks utilize AI to analyze spending patterns and flag irregular charges that could indicate fraud like Paypal. For instance, AI reduces fraud by catching unusual transactions faster than human analysts, which lessens financial losses. One day, my father received a notification from the bank saying there was fraud detection on his credit card since someone was trying to make a large purchase on it. Enabling me to find this to be interesting because financial fraud is a very large problem, and AI can help protect people’s money. However, I wonder if AI systems sometimes block legitimate purchases, and if customers can easily correct errors when flagged incorrectly.

Finance - AI in Algorithm Trading

caylamirjani — 2025-03-17 01:47:29 UTC

Video: https://www.youtube.com/watch?v=3mYw972rb_c

AI used in algorithm trading, where computers analyze market trends and execute trades at high speeds based on predictive models. Investment firms rely on AI a lot to make fast, data-driven trading decisions. There are many benefits of this, such as how AI can execute trades faster than humans, reduce emotional decision-making in investing, and capitalize on small price changes firms like JPMorgan Chase do this. Furthermore, AI’s ability to predict market trends really fascinates me because it makes investing more efficient. However, I am worried that if there is too much reliance on AI, which to me seems like there currently is, it could possibly make financial markets unstable. Especially if multiple systems react the same way at once.

Finance - AI Used in Credit Scoring

caylamirjani — 2025-03-17 01:52:08 UTC

Video: https://www.youtube.com/watch?v=6BlGwahyBAU

AI used in credit scoring to assess whether a person qualifies or a loan. Regular credit scores rely on a limited set of factors, but AI models analyze more data to provide a more nuanced assessment. For example, a major benefit of this is how AI lets lenders evaluate borrowers more accurately, which will increase access to loans for people with abnormal credit histories. However, since AI models can inhibit biases from the data they are trained on, this causes challenges. This is negative since it leads to discriminatory lending practices. Additionally, AI has the potential to make lending more fair by maintaining a larger range of financial behaviors.

Societal Impact

caylamirjani — 2025-03-17 01:52:55 UTC

AI’s impact in the finance field goes beyond just banks and business. For example, it also affects society in many ways, such as in areas like privacy, employment, and financial equity. A very big concern is job displacement. Since AI now automates tasks like risk assessment, customer service, and fraud detection many regular bank jobs are at risk. AI systems can also easily replace many finance jobs, such as loan offers and analysts. Ultimately, this raises many concerns about the future employment in the finance industry. Furthermore, privacy is another critical issue I researched. Due to the reason that AI-driven financial services need access to highly personal data, such as credit history and spending habits. Identity theft or financial fraud can occur if financial institutions do not have strong security measures, since this data could be leaked. Moreover, another thing at stake is equity in finance. AI has the ability to make financial services more inclusive. Since it can provide access to investment and loans for people who in the past were overlooked. However, if AI models are not designed carefully they could cause bias in lending and financial decision-making, disproportionately affecting lower-income or minority groups. As a future worker in the finance field, I see AI’s role in finance as something that is both very concerning and exciting. Since it has the ability to make finance more efficient, fraud-resistant, and accessible, which are all very good. However, it also creates risks that could worsen financial inequality or compromise personal privacy.

Embedded video for Finance - AI in Fraud Detection

caylamirjani — 2025-03-17 01:57:16 UTC

Embedded video for Finance - AI in Algorithm Trading

caylamirjani — 2025-03-17 01:58:20 UTC

Embedded video for Finance - AI Used in Credit Scoring

caylamirjani — 2025-03-17 02:01:49 UTC

Reflection

caylamirjani — 2025-03-17 02:03:35 UTC

Researching AI in finance has been an eye-opening experience for me. I learned how AI is revolutionizing fraud detection, credit card scoring, and algorithmic trading, making financial systems more efficient and secure. One of the biggest challenges I faced was understanding the many complexities of machine learning models used in finance. I found the technical jargon hard to understand, but I overcame this by doing research, reading simplified explanations, and watching videos that broke down these key concepts. Through this research, I realized that while AI brings a lot of benefits to finance, it also has many detriments regarding privacy, biases, and job displacement. For example, prior to doing research, I had not considered how AI-driven could reinforce discrimination if the models are trained on biased data. This made me think more critically about how financial institutions should require fairness and transparency in AI-driven decisions. This project has changed my perspective on AI in finance. Before, I mostly saw AI as a tool for efficiency knowing that it could have minor moments of inaccuracy. However, now I recognize its broader societal impact - both positive and negative. While I am excited about AI’s potential to make finance more accessible, I also believe strong regulations are necessary to prevent unintended harm.

Overview Video - Part 1

caylamirjani — 2025-03-17 02:25:13 UTC

I have to split up the video into three spearte parts. Since this website's free version only lets me record for a maximum of 2 minutes.

Overview Video - Part 2

caylamirjani — 2025-03-17 02:43:57 UTC

I have to split up the video into three spearte parts. Since this website's free version only lets me record for a maximum of 2 minutes.

Overveiw Video - Part 3

caylamirjani — 2025-03-17 02:53:41 UTC

I have to split up the video into three spearte parts. Since this website's free version only lets me record for a maximum of 2 minutes.

References

caylamirjani — 2025-03-17 03:22:31 UTC

Artificial Intelligence and its Impact on Financial Markets and Financial Stability. (2024,

September 6). IMF. https://www.imf.org/en/News/Articles/2024/09/06/sp090624-artificial-intelligence-and-its-impact-on-financial-markets-and-financial-stability [Rationale: This article explains how AI is causing efficiency by doing certain tasks way faster and more accurately than humans, which is sighnifcnat for explaining the benefits of having AI in the finance industry.]

authorsalutation:, authorfirstname:Dr. Kostis, authorlastname:Chlouverakis, authorjobtitle:EY

CESA Financial Services AI Leader / CESA-MENA Corridor AI & Data Leader, authorurl:https://www.ey.com/en_gr/people/kostis-chlouverakis. (n.d.). How artificial intelligence is reshaping the financial services industry. https://www.ey.com/en_gr/insights/financial-services/how-artificial-intelligence-is-reshaping-the-financial-services-industry#:~:text=Improved%20Risk%20Management%3A%20AI%20algorithms,provisions%2C%20and%20improved%20profit%20margins [Rationale: This article discusses the benefits of having AI in finance, and how AI specifically causes there to be a less amount of loan default, which is important in explaining the specific benefits of AI’s imapct in the fiance indusry.]

Ibm. (2025, January 29). Artificial Intelligence in finance. What is AI in finance?

https://www.ibm.com/think/topics/artificial-intelligence-finance#:~:text=Artificial%20intelligence%20(AI)%20in%20finance%20is%20the%20use%20of%20technology,in%20the%20financial%20services%20industry. [Rationale: This article provides information about machine learning, and how it has the ability to predict fraud, risks, and more, which will help me explain the benefits of having AI in finance.]

Smallen, K. (2023, April 27). The pros and cons of artificial intelligence in the financial services

industry. PenChecks Trust. https://penchecks.com/the-pros-and-cons-of-artificial-intelligence-in-the-financial-services-industry/ [Rationale: This article has information about how having AI in the finance field can cause people to lose their jobs, especially jobs in customer service, analysis, and data entry by becoming automated.]

Springboard. (2025, March 5). AI in Finance & Banking: 11 Ways It’s Changing the Industry.

IConnect | Isenberg School of Management. https://iconnect.isenberg.umass.edu/blog/2024/10/25/ai-in-finance-banking-11-ways-its-changing-the-industry/ [Rationale: This article discusses how AI notices anomalies and lessens the risks of fraud by being able to use advanced analytics, which will help me explain the benefits of AI’s impact on the finance industry.]

Walch, K. (2024, September 14). How AI is

transforming the finance industry. Forbes.

https://www.forbes.com/sites/kathleenwalch/2024/09/14/how-ai-is-transforming-the-finance-industry/ [Rationale: This article describes how AI has the ability to help make important decisions that many humans struggle with, which is another key aspect that will help me explain the benefits of having AI in the finance industry.]

Future Trends and Ethical Considerations

caylamirjani — 2025-03-17 03:28:14 UTC

AI in finance is progressing very fast, and one major trend is the rise of AI-powered financial advisors (robo-advisors). These are digital advisors that give people recommendations on how to invest their money with very little human interaction, which makes financial planning more accessible to all. Another trend is AI-driven risk management, where AI predicts economic downturns and helps banks and other financial centers prepare for financial crises. Although both these things seem very beneficial, these advancements also have some ethical concerns. For instance, one important issue is data privacy. AI systems process large amounts of personal financial data, and if it is not secured properly, this data could be exploited by cybercriminals or even be misused by financial institutions. Algorithm bias is another concern. AI models in lending and credit scoring might favor certain demographics over others unintentionally. If the training data reflects historical biases, the AI could reinforce them, making financial inequality worse, and leading to discriminatory outcomes. I personally find that AI has the ability to make finance more efficient and accessible. However, to fully do this AI needs to have strict regulations to make sure that there is fairness for all. Financial data is very sensitive, and if AI systems are designed badly, rather than helping they could cause a lot of harm. Moreover, I am very worried that as AI takes over more financial decisions, human oversight might decrease, leading to unfair outcomes or errors. This will not be okay since people's lives are impacted directly from financial systems, so AI must have transparency and accountability to prevent harming people.