The Impact of AI Transformation and Risks in Financial Services

Authors

  • Marselino Wau Program Studi Manajemen, Universitas Nias Raya, Indonesia https://orcid.org/0009-0000-2766-952X
  • Firdaus Laia Program Studi Ilmu Komputer, Universitas Nias Raya, Indonesia
  • Ferdinand Tharorogo Wau Program Studi Manajemen, Universitas Nias Raya, Indonesia
  • Jhon Firman Fau Program Studi Manajemen, Universitas Nias Raya, Indonesia

DOI:

https://doi.org/10.26905/jtmi.v10i2.14122

Keywords:

Digital Transformation, AI Risk, Financial Services.

Abstract

This research presents a novel examination of the dual impacts of digital transformation and AI risks on the quality of financial services, with a particular focus on their interplay and the role of external regulatory factors. Unlike previous studies, this research offers a detailed quantitative analysis while integrating regulatory challenges and financial literacy as critical moderating factors. A survey of 84 respondents, including risk managers, IT managers, and executives from financial institutions, was conducted to analyze the specific effects of digital transformation and AI-related risks. The findings indicate that digital transformation negatively affects service quality, while AI risks positively impact operational efficiency and data analysis accuracy. However, these two variables explain only a small portion of the variance in service quality, suggesting that other factors, such as regulatory frameworks and financial literacy, play a significant role. The study recommends enhancing technological preparedness, implementing AI risk mitigation strategies, and addressing external factors to optimize service quality in the digital era.

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Published

2024-12-24

Issue

Vol. 10 No. 2 (2024): Desember 2024

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