THE IMPACT OF ARTIFICIAL INTELLIGENCE-BASED RISK ASSESSMENT SYSTEMS ON THE QUALITY AND SPEED OF FINANCIAL DECISION-MAKING

This article examines how artificial intelligence-based risk assessment systems enhance boththe quality and speed of financial decision-making processes. As financial institutions grapple withincreasingly dynamic markets and complex data environments, traditional risk assessment toolsstruggle to process real-time information effectively. AI systems—leveraging machine learning,natural language processing, and large language models—promise rapid, accurate risk evaluation,superior predictive insights, and operational scalability. Drawing on empirical analyses and globalcase studies, this study delves into the effectiveness of AI-driven methodologies, comparing them toconventional models in domains such as credit scoring, market volatility prediction, and frauddetection. It further considers associated risks including algorithmic bias, data privacy, modeltransparency, and systemic vulnerability due to widespread use of similar AI systemsft.com+7flagright.com+7ijrpr.com+7. Results highlight that while AI systems significantly improvedecision speed and accuracy, they require robust data infrastructure, comprehensive governanceframeworks, and explainability mechanisms to ensure ethical and resilient deployment. This articleconcludes with policy recommendations aimed at optimizing financial AI systems, balancinginnovation with oversight