The Role of Artificial Intelligence in Financial Markets and the Banking Sector in Albania

Abstract:

This research explores the transformative role of Artificial Intelligence (AI) in the financial sector, with a specific focus on Albania’s financial market. AI has revolutionized financial operations worldwide by enhancing efficiencies, improving risk management, and optimizing customer services. In this study, the authors examine the adoption and implementation of AI technologies in financial institutions, specifically banks, and insurance companies in Albania. The authors analyze the opportunities AI presents, including cost reductions, revenue generation, and better risk assessment, while also addressing the associated risks such as data bias, transparency issues, and cybersecurity concerns. Through a comparative analysis with more advanced economies, is evaluated Albania’s current AI integration level and its potential for future growth. The study uses both qualitative and quantitative methodologies to assess the impact of AI on Albania’s financial system and its prospects for aligning with EU standards. The results of this research aim to provide actionable insights for policymakers, financial institutions, and stakeholders to facilitate the safe and efficient use of AI in Albania’s financial market.