Navigating the Power of Artificial Intelligence in Risk Management: A Comparative Analysis

Abstract

This study presents a responsive analysis of the role of artificial intelligence (AI) in risk management, contrasting traditional approaches with those augmented by AI and highlighting the challenges and opportunities that emerge. AI, intense learning methodologies such as convolutional neural networks (CNNs), have been identified as pivotal in extracting meaningful insights from image data, a form of analysis that holds significant potential in identifying and managing risks across various industries. The research methodology involves a strategic selection and processing of images for analysis and introduces three case studies that serve as benchmarks for evaluation. These case studies showcase the application of AI, in place of image processing capabilities, to identify hazards, evaluate risks, and suggest control measures. The comparative evaluation focuses on the accuracy, relevance, and practicality of the AI-generated findings alongside the system’s response time and comprehensive understanding of the context. Results reveal that AI can significantly enhance risk assessment processes, offering rapid and detailed insights. However, the study also recognises the intrinsic limitations of AI in contextual interpretation, advocating for a synergy between technological and domain-specific expertise. The conclusion underscores the transformative potential of AI in risk management, supporting continued research to further integrate AI effectively into risk assessment frameworks.