September 2024, Volume10 Issue-3

COMMERCE & MANAGEMENT JOURNAL

AI in Finance: Transforming Financial Systems Through Intelligent Technologies

Dr. Shivangi Awasthi

  • Pages: 1-7
    • <p>Artificial Intelligence (AI) has emerged as one of the most transformative technological innovations influencing modern financial systems. The integration of machine learning, natural language processing, predictive analytics, and automation has reshaped banking operations, investment management, risk assessment, fraud detection, and customer service delivery. Financial institutions increasingly rely on AI-driven solutions to enhance operational efficiency, reduce costs, improve decision-making accuracy, and deliver personalised financial services. This research paper examines the role of artificial intelligence in finance by analyzing its applications, benefits, challenges, and future implications for financial markets and institutions. The study adopts a conceptual and analytical research approach based on secondary data obtained from academic literature, industry reports, and financial technology studies. The findings indicate that AI significantly improves financial performance through automation, predictive modelling, and enhanced risk management, while simultaneously introducing concerns related to data privacy, algorithmic bias, regulatory uncertainty, and cybersecurity risks. The research concludes that AI will redefine financial intermediation, requiring strong governance frameworks, ethical standards, and regulatory adaptation to ensure sustainable financial innovation.</p>

Application of Artificial Intelligence in Accounting in India

Gurmeet Singh

  • Pages: 1-6
    • <p>Artificial Intelligence (AI) has emerged as a transformative technology reshaping accounting practices across the world, including India. The integration of AI into accounting functions has enhanced efficiency, accuracy, compliance, and strategic decision-making. Indian businesses, accounting firms, and financial institutions are increasingly adopting AI-based tools for automation of bookkeeping, auditing, taxation, fraud detection, financial forecasting, and regulatory reporting. This research paper examines the application, benefits, challenges, and future prospects of AI in the Indian accounting environment. The study adopts a conceptual and analytical approach based on secondary data collected from academic literature, industry reports, and professional publications. The findings indicate that AI significantly reduces manual errors, improves financial transparency, and enables accountants to shift from routine tasks to analytical and advisory roles. However, issues such as data privacy, skill gaps, implementation costs, and regulatory uncertainty remain challenges for widespread adoption. The paper concludes that AI will not replace accountants but will redefine their professional roles in India&rsquo;s digital economy. Strategic policy support, professional training, and technological readiness are essential for maximizing AI benefits in accounting practices.</p>

Climate Risk Disclosure and Financial Markets

Dr. Indu Shukla

  • Pages: 1-10
    • <p>Climate change has emerged as one of the most significant systemic risks affecting global economic and financial stability. Climate risk disclosure enables investors, regulators, and financial institutions to evaluate environmental risks associated with corporate activities and investment portfolios. This study examines the relationship between climate risk disclosure practices and financial market behavior. The paper analyzes how transparency regarding climate-related risks influences investment decisions, asset pricing, corporate valuation, and market efficiency. Using secondary data sources including academic studies, policy reports, and regulatory frameworks, the research evaluates evolving disclosure standards and their implications for financial markets. Findings suggest that improved climate disclosure enhances investor confidence, reduces information asymmetry, and promotes sustainable capital allocation. However, inconsistencies in reporting standards and lack of regulatory harmonization continue to challenge effective implementation. The study concludes that climate risk disclosure plays a critical role in strengthening financial resilience and supporting sustainable economic development.</p>

Non-Performing Assets (NPAS) And Bank Profitability

Dr. Munindra Prakash Shakya

  • Pages: 1-7
    • <p>The banking sector plays a vital role in economic development by mobilizing savings and allocating credit efficiently. However, rising Non-Performing Assets (NPAs) have emerged as one of the most significant challenges affecting the stability and profitability of banks worldwide, particularly in developing economies like India. NPAs represent loans where borrowers fail to meet repayment obligations, leading to reduced income generation and increased provisioning requirements for banks. This study examines the relationship between NPAs and bank profitability with special reference to the Indian banking sector. The research analyzes how asset quality deterioration influences financial performance indicators such as Return on Assets, Return on Equity, and Net Interest Margin. The study adopts a descriptive research design based on secondary data collected from annual reports, Reserve Bank of India publications, and financial databases. Findings indicate that increasing NPAs negatively impact profitability by eroding capital adequacy, reducing lending capacity, and increasing operational risks. The paper concludes that effective credit risk management, regulatory reforms, and technological interventions are essential to control NPAs and sustain banking profitability.</p>
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