Application of Generative Artificial Intelligence in Financial Innovation and Risk Management
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Keywords
AIGC, robo-advisor, risk prevention
Abstract
In the age of burgeoning technology, AI is playing an extremely indispensable role in finance. This paper focuses on the recent hot topic of two novel applications of generative AI, robo-advisors and emotionally-aware AI service, and the following risk prevention and control of them. And the thesis reviews the previous studies from 2022 to 2024 selected on AI core technology, machine learning, AIGC, robo-advisors and risk prevention. The review finds that during the growth of AI, though generative AI significantly improves the working efficiency, the methods to manipulate generative AI legally and avoid extra ethical and safety problems remain to be solved. Hence, the review proposes future research directions on AI explainable framework and regulatory prevention through human intervention to figure out the problems scientifically. Furthermore, this paper provides a holistic reference for both researchers and employees hoping to enhance and perfect generative AI, and address the security issues that are still not resolved at present.
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