The impact of artificial intelligence on the banking and financial sector’s strategic decision-making

Abstract

This dissertation explores the impact of Artificial Intelligence (AI) on decision-making processes within the banking and financial sector. The investigation delves into the potential of AI, its existing constraints, and the imperative human skills and considerations for its integration. This research collected data from 15 in-depth qualitative interviews, after which resulted numerous findings. Evidence shows that AI has an influential role in reshaping decision-making in the banking industry by addressing operational efficiencies and redefining the roles within the sector. Moreover, it is noticeable AI’s dual impact on streamlining operations and boosting human strategic knowledge by allowing people to focus more on challenging tasks instead of routine and repetitive chores. While data suggests AI’s instrumental role in data analysis and process automation, also underscores the complementary collaboration between humans and AI, since the technology serves as a supportive tool rather than a replacement. Further, the research also identifies technological constraints, data limitations, and ethical considerations as critical challenges in AI implementation, emphasizing the need for transparent communication, quality data, and AI-focused education for professionals. Some of the highlighted ethical and regulatory challenges include privacy concerns, data bias and veracity, and accountability, which shape the evolving landscape of decision-making in the industry. According to the findings, the future outlook of AI in the banking and financial sector delves into the integration of both human expertise and AI capabilities as the optimal approach for maximizing benefits. New skillsets will emerge and grant a faster evolution and effective collaboration.

Date of Award	26 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Filipa Andrêa Godinho de Lancastre Serpa Pinto (Supervisor)