Role of Artificial Intelligence in Micro-Financing

Abhishek Waibhaw; Sanjeet Raj

Abstract

Artificial Intelligence is the development of human intellect by machines. This is changing quickly and has established itself as one of the technical pillars of the contemporary financial industry. It has been employed more and more in the financial industry over the years since it makes problem-solving easier in all businesses, allows us to save time, and safeguards our savings. It is an essential part of banks and microfinance that contributes to the provision of trustworthy, reasonably priced financial services with methodical compliance management. Currently, AI is improving the banking and financial sectors. The goal of the research is to examine the function and applications of AI as well as the difficulties that these fields provide. Both primary and secondary sources of data are used in descriptive research. According to the study's findings, there has been a major improvement that helps banks meet their regulatory requirements in order to combat poverty and promote global economic growth, which has resulted in notable advancements in the financial sector. This study intends to investigate the complex function and uses of AI in microfinance as well as the difficulties it faces in this ever-evolving industry. This descriptive study explores how AI helps to maximize financial inclusion, enhance customer experiences, and resolve operational inefficiencies by utilizing both primary and secondary data sources. According to the research, AI has greatly improved banks' and microfinance organizations' ability to satisfy regulatory requirements, improve credit risk assessments, and fight poverty by promoting global economic growth.