The Advancement and Utilization of Artificial Intelligence and Machine Learning in the Financial Industry and Its Impact on Macro and Microeconomics

Artificial intelligence (AI) and machine learning have been employed extensively in many areas of finance most recently, owing to their explosive growth. This has had significant effects on the financial market, financial institution, and convention. The use of artificial intelligence has a significant impact on the financial industry in general. It has led to the development of several innovative financial services, including intelligent financing, intelligent advisory services, intelligent monitoring and warning, and smart customer help when needed. This paper provides an overview of the development and application of machine learning and artificial intelligence in the banking sector, as well as its implications for macro and microeconomics. Meanwhile, it becomes apparent that a large number of issues and dangers were caused by artificial intelligence when it was in use. Lastly, a number of suggestions and strategies are provided for the suitable deployment of artificial intelligence within financial risk management, taking into account the problems this technology has brought about.