THE IMPACT OF USING ARTIFICIAL INTELLIGENCE APPLICATIONS ON MITIGATING RISKS IN BANKING OPERATIONS

A FIELD STUDY APPLIED TO AL RAJHI BANK AND AL AHLI BANK

Abstract

 In recent times, banking risks have increased, impacting numerous financial institutions and leading to financial distress due to fraudulent activities and manipulation. This study explores the potential of mitigating such risks through the application of artificial intelligence, especially in the information age. The objective of this research was to examine the relationship between the use of artificial intelligence techniques in commercial banks and various aspects of banking operations. Statistical regression analysis was employed to evaluate the main hypotheses related to the impact of these technologies on reducing banking risks and the ability of banks to keep pace with global developments. Regression analysis results revealed a statistically significant correlation between the use of artificial intelligence techniques in commercial banks and both the reduction of banking risks and the alignment with global financial and banking advancements. Consequently, the findings suggest a positive relationship between the implementation of artificial intelligence in banks and the enhancement of risk management in banking operations, as well as staying updated with global trends in the financial and banking sector. Furthermore, the study identified key obstacles hindering the full utilization of artificial intelligence technologies in commercial banks. The results also indicated that commercial banks prioritize attracting and employing highly skilled human talents to ensure the achievement of their goals and the realization of planned strategic objectives. Commercial banks possess modern technologies and artificial intelligence techniques, contributing to the facilitation of banking operations, data analysis, international communications, and the reduction of money laundering, fraud, and cheating risks. However, the actual use or optimal investment in artificial intelligence applications remains limited due to technical and informational constraints and the shortage of specialists in this field.