International Journal of Scientific Research and Engineering Development

Artificial Intelligence (AI) is transforming financial services by improving accuracy, efficiency, and the quality of customer interaction. Technologies such as machine learning, natural language processing, robotic automation, and biometric tools are widely used in fraud detection, credit scoring, compliance monitoring, and customer support. While these innovations open opportunities for financial inclusion and operational improvements, they also introduce challenges related to data privacy, cybersecurity, algorithmic fairness, and regulatory oversight. As emerging economies like India undergo rapid digital transformation, understanding how AI can be used responsibly becomes crucial. This study examines perceptions of AI adoption in finance, focusing on its influence on efficiency and inclusion, and evaluates the risks and governance issues associated with AI-driven financial systems. The findings aim to contribute to responsible AI governance and improved financial stability.