Global Finance Transformation Driven By AI: Reshaping the Future with Fintech and Emerging Technologies

Abstract

The acceleration of AI, FinTech, and decentralized finance (DeFi) based on AI and blockchain is transforming the international financial landscape, rewriting the rules of value, trust, and risk management. This work presents a critical, literature-informed review that integrates conceptual, experiential, econometric, simulation, and regulatory aspects of AI for financial transformation. While the literature on the topic yields consistent results, three key opportunities emerge: increased efficiency, broader financial access, and customer engagement. However, the review also highlights ongoing challenges, including regulatory uncertainty, cybersecurity risks, algorithmic bias, and the digital divide. By comparing the approaches across (as summarized in Table 1 below), the analysis finds that no single approach is adequate to capture the multi-dimensional potential of emerging technologies within finance. The conversation reflects the paradox of disruption, where innovation democratizes access while potentially, in the absence of strong governance and ethical frameworks, entrenching systemic frailties. The report suggests that the future of finance extends beyond adopting technology to also opening up avenues for institutions to be innovative while maintaining accountability, transparency, and inclusion. The limitations of the extant literature are recognized, and suggestions are provided for multi-method, cross-country, and longitudinal research to mitigate methodological fragmentation and advance knowledge on AI and finance.