AI-Driven Chatbots in Financial Institutions: Strengthening Fraud Prevention and Risk Management

The emerging sophisticating nature of fraud in the financial sector has forced institutions to embrace different technologies to guarantee the security of their functions. One such technology involves artificial intelligence-oriented chatbots that serve as instrumental tools in detecting fraud in real-time, enhancing customer engagement, as well as supporting financial-centred risk management frameworks. This paper reviews the extent to which AI-powered chatbots could be implemented in financial institutions and the timing of their utilization to prevent fraud. While the necessity of integrating this tool on transactions monitoring, customer education, and preventing fraud ahead are other areas that are considered in the study. In addition, this paper incorporates the application of paid surveys, the use of case studies, and the incorporation of these aspects into the research touching on the practicality, hurdles, and future aspects in the financial sector.