ARTIFICIAL INTELLIGENCE IN THE FINANCIAL SECTOR OF UKRAINE: A DRIVER OF DEVELOPMENT AND A FACTOR OF MODERNIZATION

Abstract

It has been studied that the trigger of the transformation of the financial sector of Ukraine and its dynamic digitalization is artificial intelligence (AI), which plays the role of a driver of development and acts as a factor of modernization. It was established that innovations with the help of AI in the financial sector consist in the system's ability to automate data processing and calculations, which leads to acceleration, increased efficiency and expansion of financial operations. It has been established that AI can analyze large volumes of financial data, identify complex dependencies and forecast trends, facilitating strategic decision-making and management. It is noted that the use of AI in the financial sector of Ukraine allows to increase the precision of financial analysis and optimize a wide range of routine operations, which significantly reduces the time and resources of companies due to the automation of tasks, contributes to increasing the reliability of investment decisions and the efficiency of financial processes, identifying anomalies and patterns in financial data, as well as improving the cyber security system to protect against fraud and abuse. The advantages are outlined and certain shortcomings and risks that prevent the spread and use of AI in the financial sector of Ukraine are highlighted. This concerns, first of all, issues of ethics, transparency, unfair or discriminatory use of AI, as well as issues of confidentiality and protection of personal data. It was found that AI has limited capabilities in working with unstructured data and cannot always capture human emotions and context. It found that AI, despite its limitations in understanding context, is a powerful tool for Ukraine's financial sector, helping to increase the sector's competitiveness and efficiency by accelerating customer service, improving risk management and accurately forecasting economic trends.