Artificial Intelligence in Finance: How AI is Changing Business and the Industry

Artificial intelligence (AI) is rapidly transforming the financial sector, introducing innovative approaches to risk management, customer service, and operational efficiency. Kazakhstan is actively implementing AI in the financial industry, which is helping to enhance competitiveness and adapt to modern technological trends.

What is artificial intelligence in finance?

Artificial intelligence in finance involves the use of machine learning algorithms and big data analysis to automate and optimize financial processes. This includes predicting market trends, assessing credit risks, detecting fraudulent transactions, and personalizing customer service. In Kazakhstan, AI helps financial institutions process large volumes of data, improve service quality, and reduce operational risks.

The use of AI in the financial sector

Risk management

AI plays a key role in risk management, enabling banks and other financial institutions to more accurately assess customer creditworthiness and predict potential defaults. For example, Halyk Bank uses AI to assess credit risk by analyzing extensive client data and their credit history, enabling more informed lending decisions.

Customer service

In customer service, AI is being used to create chatbots and virtual assistants that provide 24/7 support and consultations. This improves customer satisfaction and reduces the workload on contact centers. In Kazakhstan, such technologies are being actively implemented in the banking sector, improving customer interactions and increasing service efficiency.

Fraud prevention

AI helps identify and prevent fraudulent transactions in real time by analyzing behavior patterns and detecting transaction anomalies. This is especially important given the growth of digital financial services in Kazakhstan, where customer security is a priority.

Investment analysis

AI-based analytical tools allow investors to more accurately predict market trends, analyze large volumes of data, and make informed decisions. In Kazakhstan, these technologies are being adopted by investment companies to enhance asset management efficiency.

The state of AI in Kazakhstan's financial sector

According to the National Bank of Kazakhstan, 31% of the country's financial market participants are already using artificial intelligence (AI) technologies in their operations. Second-tier banks are the most active in implementing AI, with 60% of them using these technologies for various tasks. In 2024, 45% of surveyed financial institutions plan to implement AI, indicating growing interest in this technology. Key areas of AI application include customer support (16%), risk management and compliance (14%), and marketing and sales (11%).

However, the degree of AI adoption varies among organizations. About 37% of respondents are in the early stages of implementation, 4% are implementing pilot projects, 11% have partially implemented AI, and only 4% have fully integrated this technology into their processes. The main obstacles to AI implementation include high budget costs (35%), data privacy and heterogeneity issues (20%), lack of quality data (19%), and difficulties recruiting qualified specialists (18%).

Despite these challenges, Kazakhstan is making significant progress in digitalization and innovation. The country is among the top three countries in the region according to the Global Innovation Index and ranks 34th out of 64 countries in the IMD World Digital Competitiveness Ranking 2024. In 2025, active development and adaptation of AI regulation and incentive strategies are planned, which will create favorable conditions for its further implementation in the financial sector.

Thus, Kazakhstan's financial sector is actively embracing artificial intelligence technologies, which will contribute to increased efficiency, improved customer service, and strengthen the country's position in the global financial market.

Challenges and prospects

Despite the obvious advantages, the introduction of AI in Kazakhstan's financial sector faces a number of challenges. The high costs of developing and implementing the technology can be a barrier for smaller organizations. Furthermore, data quality plays a key role in the effectiveness of AI, and a lack of high-quality data can limit its potential. A shortage of qualified AI specialists is also a significant issue.

However, the prospects for AI development in Kazakhstan are promising. The country is among the top 50 countries most prepared for AI implementation, ranking 48th globally. This demonstrates the country's high potential and readiness to integrate advanced technologies into its economy.

Kazakhstan's main achievements in the field of AI

In 2024, Kazakhstan demonstrated significant progress in the development of artificial intelligence and digital technologies. The first phase of a project to create a supercomputer based on NVIDIA modules has been completed, which became the platform for the KazLLM national language model. With enough power to support computing in sectors such as healthcare, finance, and mining, the supercomputer significantly expands the country's technological capabilities.

The development of digital infrastructure has also become a key priority. More than 1,500 5G base stations have been installed in 20 cities across the country, providing high-speed internet. Furthermore, technical documentation for laying fiber-optic communication lines (FOCL) in 3,000 rural communities has been completed. This will ensure internet access even in remote regions.

In the education sector, Kazakhstan is implementing advanced technologies to train qualified personnel. Plans are underway to train 1 million people in AI skills by 2029. Programs for schoolchildren, including game-based learning approaches and innovative courses, will be implemented through the TUMO and Tomorrow School projects. Particular attention is being paid to training computer science teachers and civil servants, with a basic AI course being introduced for government and corporate employees.

Kazakhstan is actively developing its legislative and institutional framework for AI. In 2024, the draft law "On Artificial Intelligence" was adopted, which includes rules for labeling AI products, ethical standards, and classification of systems by risk level. These steps are aimed at strengthening trust in technology and its safe integration into the economy and public administration.

Additionally, a pilot Starlink satellite internet project has been launched for 1,800 rural schools, and preparations have begun for the commercial provision of OneWeb internet services. The Amazon Kuiper project is planned to enter the market in 2026.

These initiatives and achievements strengthen Kazakhstan's position on the global stage, helping the country move towards becoming a technological and innovative leader in the region.

Conclusion

Artificial intelligence is already playing a cruical role in transforming the financial sector, helping banks and other institutions improve service quality, manage risks, and protect client funds. Kazakhstan is actively pursuing digitalization, implementing AI as a tool for improving efficiency and strengthening its position in the global economy.

However, implementing AI is not just about technology; it also requires a strategic approach to change. Financial institutions must consider not only the opportunities but also the challenges: the need to work with big data, train employees in new skills, and build trust in digital solutions.

PAYGATE understands that the transition to new technologies is a complex yet important process. We offer innovative solutions that help you grow your business, increase competitiveness, and offer your clients the best services. Contact us today to learn how PAYGATE can become your strategic advantage!