Artificial Intelligence in FinTech and Its Implications for International Trade Efficiency

Abstract

This study examined the role of Artificial Intelligence (AI) integration in Financial Technology (FinTech) and its implications for international trade efficiency. The research investigated how AI-driven mechanisms such as automated document processing, enhanced risk assessment, fraud detection, and compliance systems contributed to transaction cost reduction and overall trade performance. Using quantitative analysis, the study evaluated relationships among AI adoption, operational efficiency variables, and international trade efficiency. The findings revealed that AI integration significantly improved trade efficiency by accelerating cross-border payment processes, minimizing financial risks, and enhancing regulatory transparency. Transaction cost reduction emerged as a critical mediating factor linking AI-enabled FinTech innovations to improved trade outcomes. The results indicated that predictive analytics and machine learning models strengthened credit evaluation and fraud monitoring, thereby reducing uncertainty and information asymmetry in global trade transactions. The study concluded that AI-driven FinTech solutions functioned as strategic enablers of competitiveness in international markets by enhancing speed, reliability, and cost-effectiveness of trade finance operations. The findings provided empirical support for digital transformation theories within financial inter-mediation and highlighted the importance of supportive regulatory frameworks and digital infrastructure development. The study offered practical recommendations for policymakers and financial institutions seeking to leverage AI technologies to improve global trade efficiency.

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