Artificial Intelligence and Impact on Financial Decision-making in Financial Firms in Nigeria

This study investigated the impact of artificial intelligence (AI) on financial decision-making 
in selected financial firms in Nigeria, focusing on how AI-based systems enhance forecasting 
accuracy, decision-making speed, risk management effectiveness, investment decision quality, 
and operational efficiency. The aim of the study was to examine the extent to which AI 
technologies specifically automation of financial processes, predictive analytics, AI-driven 
customer service, fraud detection systems, and decision support systems contribute to improved 
financial decision outcomes. The objectives were to determine the influence of automation on 
forecasting accuracy, evaluate the effect of predictive analytics on decision-making speed, 
assess the impact of AI-driven customer service on risk management effectiveness, examine 
how AI-based fraud detection systems improve investment decision quality, and analyze how 
AI-powered decision support systems enhance operational efficiency. The study adopted a 
quantitative research design using a structured questionnaire administered to employees 
across seven major financial institutions, including Zenith Bank, GTCO, Access Bank, First 
Bank, UBA, ARM, and Leadway Assurance. A sample size of 350 respondents was selected 
using stratified random sampling. Data were analyzed using descriptive statistics and 
inferential tools such as regression and correlation analysis. The findings revealed that 
automation significantly improved financial forecasting accuracy (β = 0.721, p < 0.05), 
predictive analytics had a strong positive impact on decision-making speed (β = 0.684, p < 
0.05), and AI-driven customer service enhanced risk management effectiveness (β = 0.702, p 
< 0.05). Additionally, AI-based fraud detection systems significantly improved investment 
decision quality (β = 0.763, p < 0.05), while AI-powered decision support systems strongly 
enhanced operational efficiency (β = 0.694, p < 0.05). The study concluded that artificial 
intelligence plays a transformative role in strengthening financial decision-making across 
Nigerian financial firms, offering measurable improvements in accuracy, efficiency,  responsiveness, and risk control. It recommended that financial institutions increase 
investments in AI infrastructure, enhance employee training programs, strengthen fraud 
analytics, and integrate AI systems with enterprise risk management frameworks for optimal 
results