A STUDY ON THE ROLE OF ARTIFICIAL INTELLIGENCE IN ENHANCING RISK MANAGEMENT STRATEGIES IN ASSET MANAGEMENT COMPANIES

AUTHOR – R.RITHIK RAJAN* & T .SANTHOSH**

* STUDENTS AT SAVEETHA SCHOOL OF LAW, SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCES (SIMATS), CHENNAI

BEST CITATION – R.RITHIK RAJAN & T .SANTHOSH, A STUDY ON THE ROLE OF ARTIFICIAL INTELLIGENCE IN ENHANCING RISK MANAGEMENT STRATEGIES IN ASSET MANAGEMENT COMPANIES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (10) OF 2025, PG. 07-36, APIS – 3920 – 0001 & ISSN – 2583-2344.

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ABSTRACT:

The evolution of artificial intelligence (AI) in financial risk management has significantly transformed the asset management sector by enhancing risk assessment and mitigation strategies. Traditional risk management practices predominantly relied on manual analysis, statistical models, and historical data to forecast financial risks. However, these conventional approaches often failed to capture the complexities of rapidly changing market conditions and emerging financial threats. The objective of the research is to examine the effectiveness of AI-driven risk mitigation strategies in asset management companies. The aim of this research is to evaluate the effectiveness of AI-driven risk mitigation strategies in asset management companies. It seeks to explore how AI improves fraud detection, enhances compliance monitoring, and strengthens risk prediction capabilities. This paper followed an empirical method of research. The data is collected through a questionnaire with a set of questions, and the sample size is 216. This study used a Convenience sampling method to collect the data. The samples were collected from the general public in reference to the Tiruvallur region. The independent variables are Gender, Age, Educational Qualifications, Occupation, and Marital Status. The dependent variables include the effectiveness of AI in risk mitigation, improvement in fraud detection, accuracy of market trend predictions, and compliance monitoring efficiency. The research suggests that financial institutions should enhance transparency in AI applications and implement ethical safeguards to build public trust.

KEYWORDS: Artificial Intelligence, Risk Management, Fraud Detection, Predictive Analytics, Cybersecurity.