Year: 2025 | Month: October | Volume: 12 | Issue: 10 | Pages: 473-484
DOI: https://doi.org/10.52403/ijrr.20251050
AI in Financial Strategy and Risk Mitigation
Partiksha Malik1, Manav Sablok2, Shatakshi Shrivastav3, Yashashvi Noniwal4, Sahil Soni5
1Student of BBA LLB 9th Semester, Department of Law, Maharishi Markandeshwar (Deemed to be University, Mullana, Ambala,
2Student of BBA LLB 9th Semester, Department of Law, Maharishi Markandeshwar (Deemed to be University, Mullana, Ambala,
3Student of BBA LLB 9th Semester, Department of Law, Maharishi Markandeshwar (Deemed to be University, Mullana, Ambala,
4Student of BBA LLB 9th Semester, Department of Law, Maharishi Markandeshwar (Deemed to be University, Mullana, Ambala
5Student of BBA LLB 9th Semester, Department of Law, Maharishi Markandeshwar (Deemed to be University, Mullana, Ambala,
Corresponding Author: Partiksha Malik
ABSTRACT
Incorporating Artificial Intelligence (AI) into financial strategy and risk mitigation has become a revolutionizing force in the contemporary financial landscape. AI technologies such as machine learning, predictive analytics, and natural language processing are empowering financial institutions to improve decision-making, optimize investment approaches, and anticipate risks. Through the examination of huge amounts of structured and unstructured data, AI is able to discover patterns, predict market patterns, and identify anomalies that can reflect possible financial risks. This function optimizes operating efficiency, minimizes human error, and delivers real-time insights essential for strategic planning. In addition, AI-based risk management systems enable businesses to predict credit, market, liquidity, and operational risks, thus enhancing regulatory compliance and stakeholder trust. Although promising, the use of AI in finance presents challenges in ensuring data quality, algorithmic transparency, ethical implications, and cybersecurity vulnerabilities. Overcoming these involves a mix of strong technological platforms, regulative governance, and strategic leadership. This paper examines the contribution of AI to informing financial strategies, preventing risk, and spearheading sustainable competitive advantage, with opportunities and constraints in using AI to ensure sustainable financial management.
Keywords: Artificial Intelligence, Financial Strategy, Risk Mitigation, Predictive Analytics, Machine Learning, Financial Decision-Making, Operational Efficiency, Regulatory Compliance.
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