AI and Digital Finance: A Structured Review of Opportunities, Risks, and Governance Challenges

The rapid evolution of digital finance, propelled by FinTech, artificial intelligence (AI), generative AI, and central bank digital currencies (CBDCs), is fundamentally altering financial stability, risk management, and strategic decision-making. This review synthesizes recent developments in forecasting, risk modeling, algorithmic trading, financial analytics, and governance to elucidate the transformative impact of AI-enabled systems on financial ecosystems. The analysis identifies opportunities to enhance predictive accuracy, market efficiency, operational resilience, fraud prevention, cyber-attack mitigation, anti-money laundering detection, real-time decision support, and financial inclusion. AI further holds promise for advancing fairness by providing smaller firms with access to sophisticated tools previously available only to large institutions. Nevertheless, significant challenges persist, including model opacity, systemic risks associated with AI-driven trading, fragmented research efforts, limited transparency, and governance deficiencies. Addressing these challenges necessitates the development of domain-specific generative AI models, transparent evaluation standards, integrated frameworks for forecasting and risk governance, and adaptive regulatory approaches. Human-in-the-loop intelligence systems remain critical to ensuring contextual judgment, ethical alignment, and trust. Drawing on recent scholarship, this review delineates key directions for responsible, well-regulated AI adoption, underscoring the imperative to align technological innovation with robust governance to foster resilient, inclusive digital financial infrastructures.

کلیدواژه ها:

Artificial Intelligence in Finance ، Generative AI ، FinTech Innovation ، Governance Challenges ، Risk Management