An application on estimating financial failure risk in businesses with artificial intelligence techniques

In today's rapidly changing and competitive business world, the financial success and sustainability of businesses is critical to economic growth and job creation. However, many businesses can face financial challenges and end up in financial failure over time. Therefore, it is critical to accurately assess the financial condition of businesses and identify signs of potential failure at an early stage. This study aims to examine how artificial intelligence techniques can be used to predict the financial failure of businesses. While traditional financial analysis methods are usually performed with limited data sets and calculations based on specific rules, artificial intelligence techniques stand out with the ability to perform in-depth analysis on large data sets. The aim of this study is to investigate how we can adapt artificial intelligence algorithms to predict future adverse situations using financial data of businesses. Artificial intelligence, especially machine learning and deep learning methods, offers powerful tools that can be used to predict the risk of financial failure of businesses. By analyzing large data sets, one can better understand the factors that can affect the financial performance of businesses. These factors include financial statement data, business operations, industry trends, economic indicators and competitive factors. By analyzing this data, artificial intelligence algorithms identify potential risks and signals, thereby enabling businesses to be more resilient to financial crises or failures. As a result, early detection of financial failures is critical for business owners and managers as well as financial institutions. For this purpose, artificial intelligence techniques can complement traditional financial analysis methods and offer stronger forecasting capabilities. This paper highlights how AI technologies can be used to enhance the financial sustainability of businesses and ensure economic stability.