Barriers to the Adoption of Artificial Intelligence in Financial Analysis within Libyan Commercial Banks: An Applied Study on the Main Branch of Jumhouria Bank

Abstract

This paper aims to identify the obstacles that affect the expansion of utilizing artificial intelligence (AI) techniques in financial analysis within Libyan financial institutions, especially after the recent orientation toward digital transformation and the adoption of Islamic financial systems. The study identified a number of variables that may influence the integration of AI in financial analysis. These factors include: laws and regulations, organizational direction, financial capacity, management and human resource efficiency, and external conditions. The study relied on the questionnaire method in the data collection process. From the results of the statistical analysis, it was found that all the variables have an impact on the adoption of AI in financial analysis. The state’s general policy ranked first, external conditions ranked second, expertise and efficiency within the institution ranked third, laws and legislations ranked fourth, internal organizational handicaps came in fifth place, and the financial strength of the institution ranked sixth among the factors affecting the ability to expand the use of AI in financial analysis. The findings highlight that overcoming these obstacles requires strengthening the legislative framework, investing in human capital, enhancing financial capacity, and developing clear strategies to address external conditions. Addressing these challenges will enable Libyan financial institutions to benefit from AI in improving analytical accuracy, supporting decision-making, and enhancing competitiveness.