Artificial intelligence and financial decisions: Empirical evidence from developing economies

Abstract

Recent technological advancements are endless and have had a profound influence on everyone in every part of life throughout the preceding decades. Artificial intelligence is one such invention that has the potential to change the world. Now, artificial intelligence is being used in almost all commercial operations. Hence, this research attempted to investigate the impact of artificial intelligence dimensions, including natural language processing, machine learning, expert systems, and computer vision on the financial decisions of pharmaceutical companies in Jordan. A cross-sectional approach was used through a comprehensive survey to collect research data from 148 accountants and financial managers in pharmaceutical companies listed on the Amman Stock Exchange with a response rate of 81.3%. The research hypotheses were examined using structural equation modeling of the collected quantitative data. The results indicated that the dimensions of artificial intelligence positively impact financial decisions. Accordingly, companies should spend on building strong artificial intelligence infrastructure and skills. Access to modern artificial intelligence technology, data analysis tools and cloud computing resources are also essential to rationalizing financial decision-making. Besides, Jordan's pharmaceutical sector can overcome these limitations and realize the full potential of artificial intelligence in financial decision-making by solving data privacy issues, encouraging ethical AI re-search, investing in artificial intelligence expertise, and enhancing collaboration.