Sample Finance Journal Article: The Impact of Artificial Intelligence on Financial Risk Management in the Post-2025 Era

Abstract

This article examines the transformative role of artificial intelligence (AI) in financial risk management following the economic shifts of 2025. Drawing on a comprehensive review of literature and empirical analysis of major financial institutions, it explores how AI-driven models enhance predictive accuracy, automate compliance, and mitigate systemic risks. The study employs a mixed-methods approach, including quantitative simulations and qualitative case studies from European and North American banks. Findings reveal that AI adoption correlates with a 25-35% reduction in operational losses, though challenges such as algorithmic bias and regulatory hurdles persist. Practical implications underscore the need for ethical frameworks and hybrid human-AI systems. This research contributes to the evolving discourse on fintech integration, offering actionable insights for policymakers and practitioners.