Quantitative and Qualitative Analysis of AI Use in Financial Services

Abstract

Quantitative and Qualitative Analysis of AI Use in Financial Services Adam Steiner 2024/25 Abstract This thesis explores the use of artificial intelligence (AI) in financial services us- ing both quantitative and qualitative analytical methods. The first part of the study investigates the impact of AI investments on the financial performance of companies-specifically ROE and ROA-in the U.S. financial services sector between 2014 and 2023. To uncover these relationships, panel regressions with random effects were employed. The results of these models reveal that invest- ments in AI did not have a statistically significant impact on companies' finan- cial performance. Additionally, the models revealed several significant drivers of both ROE and ROA. The former is driven by net profit margin, short-term debt to total assets, U.S. unemployment rate, tax rate and earnings per share, while the latter by net profit margin, operating profit margin, revenue growth rate, U.S. GDP, U.S. inflation and asset turnover ratio. The second part of the research explores AI's role in financial services through interviews with five industry professionals. While AI is seen as a powerful and expanding tool, con- cerns remain around its reliability, privacy risks, and its impact on the change of job roles. 1

Quantitative and Qualitative Analysis of AI Use in Financial Services Adam Steiner 2024/25 Abstrakt Tato studie zkouma ́ vyuz ̌itı ́ ume ̌le ́ inteligence (AI) ve financ ̌nı ́ch sluz ̌ba ́ch po- mocı ́ kvantitativnı ́ch a kvalitativnı ́ch analyticky ́ch metod. Prvnı ́ c ̌a 'st pra ́ce se zame ̌r ̌uje na dopad investic do ume ̌le ́ inteligence na financ ̌nı ́ vy ́konnost firem, konkre ́tne ̆ ukazatele ROE a ROA, ve financ ̌nı ́m sektoru v obdobı ́ let 2014 az ̌ 2023. K odhalenı ́ te ̌chto vztahu ̊ byly vyuz ̌ity panelove ́ regresnı ́ modely s na ́hodny ́mi efekty. Vy 'sledky ukazujı ́, z ̌e investice do ume ̌le ́ inteligence neme ̌ly statisticky vy ́znamny ́ vliv na financ ̌nı ́ vy ́konnost 27 analyzovany ́ch podniku ̊. Modely navı ́c odhalily ne ̌kolik vy ́znamny ́ch faktoru ̊ ovlivn ̌ujı ́cı ́ch jak ROE, tak ROA. ROE je ovlivn ̌ova ́no c ̌istou ziskovou marz ̌ı ́, podı ́lem kra ́tkodobe ́ho dluhu na celkovy ́ch aktivech, mı ́rou nezame ̌stnanosti v USA, dan ̌ovou sazbou a ziskem na akcii, zatı ́mco ROA je ovlivn ̌ova ́no c ̌istou ziskovou marz ̌ı ́, provoznı ́m ziskovou marz ̌ı ́, tempem ru ̊stu trz ̌eb, americky ́m HDP, inflacı ́ v USA a obratem ak- tiv. Druha ́ c ̌a 'st studie zkouma ́ roli ume ̌le ́ inteligence ve financ ̌nı ́ch sluz ̌ba ́ch prostr ̌ednictvı ́m rozhovoru ̊ s pe ̌ti odbornı ́ky z oboru....