Impact of Artificial Intelligence Disclosure on Financial Performance and Financial Inclusion

Purpose: The purpose of the research is to analyze how AI transparency drives financial performance and diversity of banks. In financial services, credit rating, Audit, and Digital Payment through the utilization of artificial intelligence improve financial performance and accessibility. Design/Methodology/Approach: This research therefore uses an AI disclosure index to assess the level of voluntary AI disclosure and how it impacts financial performance and disclosure. The empirical analysis used in the study also applies content analysis to assess the quality of Artificial Intelligence disclosures as well as control for performance factors including the age and size of banks. Findings: This study aims at filling this important research gap by examining the relationship between the extent of AI disclosure and financial performance and the extent of financial inclusion. The study questions are based on the first two effects, the influence of AI transparency on the financial performance and the degree of financial inclusiveness. Implications/Originality/Value: This study succinctly extends the prior literature on AI. This led to calling for proper and transparent reporting standards to fix ethical questions and improvements to make banking better and for the majority of people.