THE AI REVOLUTION IN RISK MANAGEMENT: SMARTER STRATEGIES FOR A SAFER FUTURE

Artificial Intelligence (AI) has enhanced traditional risk management, leading to data-driven, proactive, and sensitive systems. This paper aims to explore the effects of AI on risk management in different industries, including financial services, healthcare, and information technology, with examples of AI-enabled approaches, such as predictive analysis, real-time risk assessment, fraud detection, and Explainable AI. The use of AI enhances risk analysis quality, but its application in risk management involves data uncertainties, model transparency issues, legal matters, and ethical considerations. This paper discusses the integration of AI with other technologies, including blockchain and quantum computing, to enhance risk management. This paper looks at the potential and challenges of AI-based risk management from the literature and real-life situations and suggests some ways to improve the integration of AI in this area for sustainability.