The Impact of Artificial Intelligence on Financial Decision-Making: A Fintech Perspective

Abstract

The integration of artificial intelligence (AI) technologies within financial technology (fintech) platforms has fundamentally transformed financial decision-making processes across institutional and consumer domains. This study examines how AI implementation influences decision quality, processing speed, and accessibility within fintech ecosystems through a mixed-methods analysis of 47 fintech platforms and 15 industry professional interviews. Primary research involved quantitative analysis of algorithmic trading systems, robo-advisors, credit scoring mechanisms, and consumer financial applications, supplemented by stakeholder interviews spanning 2020-2025. Findings indicate that AI integration significantly enhances decision speed (average improvement of 78%) and accuracy metrics, while demonstrating measurable improvements in decision quality through reduced error rates (27% to 13%) and enhanced predictive accuracy. However, results reveal critical challenges including algorithmic bias (1.3 percentage point interest rate differential for African American applicants), regulatory compliance complexities, and digital divide concerns affecting financial inclusion. The study contributes to understanding AI's transformative role in financial services while highlighting necessary considerations for sustainable implementation.