IMPACT OF ARTIFICIAL INTELLIGENCE ON FINANCIAL DECISION MAKING IN NEPAL

Abstract

This study investigates the potential impact of artificial intelligence (AI) adoption on Nepal's financial sector, where AI utilization for financial prediction remains limited despite global advancements. The research underscores AI's transformative potential demonstrated globally in improving decision-making and operational efficiency within financial services, contrasting with Nepal's predominantly traditional financial industry. By focusing on AI's development in data analysis, risk prediction, and financial information management, the study aims to fill critical gaps in understanding AI's role in enhancing financial decision-making processes. Employing a survey research design with 150 participants primarily from technical analysis-focused stock trading backgrounds, the study utilizes statistical tools like correlation analysis and multiple linear regression to analyze relationships among variables. Findings reveal mixed perceptions among participants regarding AI's effectiveness in financial decision-making, highlighting both its capabilities and challenges such as data quality and trust issues. Overall, the study provides insights into AI's potential to optimize decision-making, manage risks, and drive innovation in Nepal's financial landscape, contributing to strategic decision-making and policy formulation for digital transformation in the sector.