Artificial Intelligence for Fraud Detection and Portfolio Optimization: Insights from UK Financial Institutions

Abstract

Introduction: Artificial intelligence has become an essential tool in modern financial services, particularly in the areas of fraud detection and investment management. Increasing financial crimes and the growing complexity of market environments have created a need for advanced technological solutions capable of supporting more accurate and timely decision-making in financial institutions. Objective: This study examines the role of artificial intelligence in enhancing fraud detection and portfolio optimization within financial institutions in the United Kingdom.Method: A quantitative, observational survey was conducted among one hundred and fifty banking professionals from five major financial institutions. The data collection instrument was developed by the researchers using information derived from twenty peer-reviewed academic sources and industry publications. Data were analysed using descriptive statistics to identify general patterns and tendencies in respondents’ perceptions. Results: The results show that artificial intelligence contributes meaningfully to strengthening fraud prevention mechanisms and improving investment management processes, particularly through enhanced analytical capacity and improved risk interpretation. Conclusion: The study further demonstrates that artificial intelligence supports more secure, efficient, and responsive financial operations, indicating its relevance for the future of financial services in the United Kingdom.