Credit Scoring Meets Ai: A New Era of Risk Management

<p><span lang="EN-US">This study investigates how artificial intelligence (AI) is revolutionizing risk management and credit scoring in the financial industry. Financial institutions are strengthening their decision-making and prediction capacities by using AI technologies like machine learning, neural networks, and natural language processing. In addition to reviewing pertinent literature, the study examines current AI-based credit scoring models, describes how to assess their effectiveness, and provides visual data representations to back up its conclusions. Our investigation demonstrates the advantages of AI, such as expanded accessibility to finance, increased efficiency, and improved accuracy. We do, however, also go into the difficulties in using AI, including model risk, data quality, and regulatory compliance. For researchers, practitioners, and policymakers, this article offers a thorough analysis of the potential and constraints of artificial intelligence in credit and risk management.</span></p>