A Study on Artificial Intelligence And Risk Management

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The British University in Dubai (BUiD)
This paper has focused on the topic “ARTIFICIAL INTELLIGENCE AND RISK MANAGEMENT”. The aim of this paper was to develop an understanding of artificial intelligence along with exploring the relation between AI and risk management. In this paper, the researcher has focused on analyzing the effects and challenges of artificial intelligence as experienced by companies and government. In order to conduct this study, the researcher has followed primary qualitative data analysis and secondary thematic analysis method. In the primary data collection method, the researcher has interviewed senior level employees of leading organization including the members of research department of DEWA and risk analytics department of IBM. It has been observed that most of participants have positive attitude towards artificial intelligence. Majority of respondents believed that artificial intelligence can enhance the capabilities of risk management framework in an organization. In the secondary thematic analysis, the researcher has analyzed the findings of scholars and journals. Majority of researchers in this domain believe that artificial intelligence can help in minimizing risk of the business organization and government organization. However, several researchers have argued that current artificial intelligence system is not enough matured, it requires target research and development for improving their efficiency. It has been observed that rate of error produced by artificial intelligence system has reduced steadily during the last ten years. However, it is efficiency that remains is questionable. It has been found that the average productivity of the developed nation has not increased with respect to increase in the efficiency of artificial intelligence. In this paper the researcher has made recommendation regarding the use of open-source software, Cognitive Analytics and the Implementation of cognitive computing for data modeling. The open sources model can help in dealing with operational risk at the workplace. In addition to this, application of cognitive analytics could also help in dealing with financial risk in the business.
artificial intelligence, risk management, business organization, government organization