Author(s)

Ngoc Anh Thy Nguyen

Corresponding Author

Ngoc Anh Thy Nguyen

Abstract

With the deep integration of artificial intelligence (AI) technology into the financial sector, financial innovation has shown features of intelligence, digitalisation, and scenario-based application. This has injected new momentum into resource allocation efficiency, financial inclusion, and economic growth. The application of AI in credit risk control, robo-advisory, algorithmic trading, and regulatory technology (RegTech) has significantly improved information processing capabilities and risk identification levels. However, while AI empowers financial innovation, it also brings new challenges such as algorithmic bias, systemic technological risks, ethical dilemmas, and regulatory lag. Based on fintech development theory, endogenous growth theory, and the risk governance framework, this paper systematically explores the economic growth effects, risk generation mechanisms, and governance paths of AI-enabled financial innovation. The study finds that AI promotes economic growth through efficiency improvement, innovation diffusion, and inclusive finance, but its risks are often hidden, cross-domain, and amplifying. Therefore, this paper proposes building a multi-level risk governance system, including intelligent regulation, algorithmic ethics governance, institutional risk management innovation, and international coordinated supervision, aiming to provide theoretical and practical references for fintech policy-making and regulation.

Keywords

Artificial Intelligence; Financial Innovation; Economic Growth; Risk Governance