ARTIFICIAL INTELLIGENCE AND BIG DATA IN MODERN BANKING: FROM RISK DETECTION TO DECISION-MAKING

Abstract

The increasing use of artificial intelligence and Big Data is reshaping the way banks identify risks, process financial information, and make managerial decisions. This study examines the role of AI-based tools and large-scale data analytics in strengthening credit assessment, fraud detection, customer analysis, and risk monitoring in modern banking. Particular attention is given to the ability of these technologies to process diverse data sources, recognize complex patterns, and support faster and more informed decision-making. The study also considers challenges associated with data quality, algorithmic transparency, cybersecurity, and the reliability of automated decisions. It is argued that the effective combination of artificial intelligence and Big Data can enhance the analytical capacity of banks and contribute to more proactive risk management. At the same time, technological solutions should be supported by appropriate governance, human oversight, and data protection mechanisms to ensure their responsible and sustainable application in banking practice.