Exploring the Implementation and Challenges of AI-Based Fraud Detection Systems in Financial Institutions

Abstract

Global financial systems' stability and integrity are seriously threatened by financial fraud. Financial institutions have been using artificial intelligence (AI) and machine learning (ML) technology more and more to improve their fraud detection skills in response to changing fraud schemes and growing complexity. The efficiency of AI-based fraud detection systems in identifying financial crimes and reducing risks, however, is still up for discussion and close examination. The purpose of this qualitative study is to investigate the application of AI-based fraud detection systems in financial institutions, as well as the associated problems. To gather information from important parties involved in the deployment and application of AI-based fraud detection systems in financial institutions, qualitative research techniques such as focus groups and semi-structured interviews will be used.