Data Privacy and Cybersecurity Challenges in AI-Enhanced Financial Services: A Comprehensive Analysis
Chinedu C. Onyeje, Togunde Matthias Oluloni, Jesufemi Olanrewaju · International Journal of Research Publication and Reviews · 2024
In the rapidly evolving landscape of financial services, the integration of artificial intelligence (AI) and data analytics brings both opportunities and challenges, particularly regarding data privacy and cybersecurity.This paper provides a comprehensive analysis of the dual challenges faced by financial institutions as they leverage AI technologies for enhanced services.It begins by exploring the significance of data privacy regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), emphasizing their critical role in safeguarding consumer data in the age of AI.The study then delves into the cybersecurity risks that accompany large-scale data collection and processing, highlighting vulnerabilities that can arise from inadequate protection measures.Strategies for ensuring data privacy while simultaneously implementing robust cybersecurity frameworks are discussed, showcasing the need for a balanced approach that prioritizes both areas.Furthermore, the paper presents actionable recommendations for financial institutions to navigate the complex interplay of AI, data analytics, and cybersecurity, ensuring compliance with regulations while protecting sensitive customer information.Through a synthesis of current literature, regulatory insights, and case studies, this research underscores the necessity of adopting an integrated strategy to address the multifaceted challenges of data privacy and cybersecurity in AI-enhanced financial services.