The Role of Artificial Intelligence in Bank Credit Analysis to Reduce Credit Risk Applied to a Group of Banks in the Kingdom of Saudi Arabia

Abstract

This study aims to explore the role of artificial intelligence in enhancing credit analysis processes to reduce credit risk. The study focuses on understanding how AI technologies can improve the accuracy and efficiency of customer creditworthiness assessments in banks and evaluates the impact of these technologies on mitigating risks associated with loan granting. Through the application of the study on a sample of banks in Saudi Arabia, the findings reveal the diversity and variability of banking risks and demonstrate the role of AI in enhancing credit rating processes, which contributes to reducing non-performing loans and increasing the reliability of assessments.

    The results show a clear relationship between AI usage and improvements in the accuracy and efficiency of credit analysis processes in banks, and that credit rating based on accurate analysis effectively supports credit risk management. Based on these findings, the study provides some recommendations, including promoting the use of AI in credit analysis, adopting modern risk assessment models, and enhancing workforce efficiency to achieve greater effectiveness in risk management.