The concept of using artificial intelligence methods in debt financing of business entities

Oleh Veres, Pavlo Ilchuk and Olha Kots

Lviv Polytechnic National University, Stepana Bandery str. 12, Lviv, 79013, Ukraine

The COVID-19 crisis has speeded up the economy’s digitalization, including artificial intelligence techniques. Artificial intelligence methods are increasingly being implemented into finance from year to year. The research reveals the essence and concept of using artificial intelligence methods in general and in debt financing in particular. It is proposed to distinguish four criteria (context, data, model and tasks) in the concept of using artificial intelligence methods and to consider such usage through the prism of the life cycle of the artificial intelligence system. The list of tasks of artificial intelligence systems in debt financing is formed, and the main problem situations on debt financing management in which it is expedient to use artificial intelligence methods are identified. Since bonds are the primary tool for attracting debt financing in the stock market, and their scope requires the active implementation of digital technologies, the research clarified the algorithm for pricing bonds using artificial intelligence methods, which improves the interaction between lenders and borrowers. Particular attention is paid to identifying the benefits and risks of using artificial intelligence methods in debt financing and applying artificial intelligence methods in debt financing of business entities at different management levels. It is proved that in the conditions of total digitalization, the necessity of using modern information technologies, particularly methods of artificial intelligence, is necessary.