ANALYSIS OF ARTIFICIAL INTELLIGENCE UTILIZATION IN BANKING RISK MANAGEMENT

Abstract

Artificial Intelligence (AI) has great potential to improve efficiency and effectiveness in risk management within the banking industry. However, its implementation also presents significant challenges, particularly regarding data security, ethics, and regulation. This study aims to analyze the role and utilization of AI in supporting banking risk management through a comprehensive literature review. The method used is qualitative descriptive with a literature review approach. The analysis results show that AI can increase accuracy and speed in risk assessment, enable early identification of potential problems, and support more sophisticated predictive modeling. However, its implementation also faces challenges such as customer data security, compliance with sharia principles in Islamic banking, and the need for adaptive regulations. Human resource development and system integration are also key success factors. In conclusion, although AI offers revolutionary potential in banking risk management, its application requires a careful and comprehensive approach that considers aspects of regulation, data security, and human resource development