# AI in Finance

AI is widespread in trading, fraud detection, credit, and customer service. This sub-article is an application-domain article under [Recent Topics](../recent.md).

## Trading and Markets
- Algorithmic trading uses AI for prediction and execution.
- Risks: market manipulation, correlated crashes, and opacity.

## Fraud and Risk
- Models detect fraud, money laundering, and credit risk.
- Bias in credit decisions can discriminate against groups.

## Customer Service and Advice
- Chatbots and robo-advisors handle queries and investments.
- Fiduciary duties and disclosure of AI use are debated.

## Regulation
- Financial regulators require model governance, auditability, and fair-lending checks.
- "AI washing" (overstating AI use) is a concern.

## Why It Matters
Finance is high-stakes, regulated, and fast-moving; AI must be explainable and fair.

## Sources
- Securities and Exchange Commission. *AI and algorithmic trading guidance.*
- Consumer Financial Protection Bureau. *AI in credit decisions.*

*Back to [Recent Topics](../recent.md).*