Role of Artificial Intelligence in Finance: Selective Literature Review and Implications for Asia's Financial Stability

2026

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This paper provides a comprehensive review of AI's impact on finance, highlighting its dual role in enhancing efficiency and introducing new risks, with a specific focus on implications for Asia's financial stability.

* **Executive Blurb:** This paper offers a systematic review of AI's transformative impact on the global financial landscape, categorizing its contributions into asset pricing, financial markets, and corporate finance, and critically assessing its implications for Asia's financial stability.
* **Key Findings:** AI enhances efficiency and financial inclusion but also introduces "adaptive fragility" through market power concentration, algorithmic biases, and intensified systemic linkages.
* **Focus on Asia:** The review provides a specialized assessment of AI's implications for financial stability within Asia's rapidly evolving markets, considering regional fragilities and governance challenges.
* **Methodology:** Synthesizes 249 peer-reviewed studies published between 1990 and 2025, employing bibliometric analysis and co-occurrence mapping.

Tags: Artificial Intelligence, Finance, Financial Stability, Asia, Literature Review

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