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ABSTRACT Blockchain and artificial intelligence (AI) are transforming the financial industry by offering novel solutions to long‐standing challenges such as security risks, regulatory compliance, and operational inefficiencies. Despite significant progress, a systematic understanding of the intersection between blockchain and AI in financial risk mitigation is lacking. This study conducts a systematic literature review (SLR) to identify current applications, emerging trends, and security concerns at this intersection. Guided by four research questions, the review examines 134 peer‐reviewed publications sourced from IEEE Xplore, Springer, ScienceDirect, and Wiley databases. A PRISMA framework was used to ensure transparency in article selection. The analysis highlights key areas such as fraud detection, smart contract automation, decentralized identity verification, and regulatory challenges. Our findings contribute to the development of secure, AI‐enhanced blockchain solutions tailored to the financial sector. This review offers practical implications for policymakers, researchers, and financial institutions aiming to foster trust, resilience, and innovation in digital finance. The review's findings underline that the convergence of AI and blockchain offers both opportunities and emerging risks for financial institutions. Unlike previous reviews that examined these technologies separately, this study provides a consolidated understanding of how AI enhances blockchain's resilience and regulatory compliance in digital finance. The results also identify open challenges that should guide future empirical research, including model explainability, governance automation, and cross‐jurisdictional regulation.
Khan et al. (Sun,) studied this question.
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