Neural Networks and Expert Systems: New Horizons in Business Finance Applications

Neural networks and expert systems are two major branches of artificial intelligence (AI). Their emergence has created the potential for a new generation of computer‐based applications in the area of financial decision making. Both systems are used by financial institutions and corporations for a variety of new applications from credit scoring to bond rating to detection of credit card fraud. While both systems belong to the applied field of artificial intelligence, there are many differences between them which differentiate their potential capabilities in the field of business. Presents an analysis of both neural networks and expert systems applications in terms of their capabilities and weaknesses. Uses examples of financial applications of expert systems and neural networks to provide a unified context for the comparison.