Using AI in SMEs to Prevent Corporate Insolvencies: Identification of Frequently Used Algorithms Based on a Literature Review
Using AI in SMEs to Prevent Corporate Insolvencies: Identification of Frequently Used Algorithms Based on a Literature Review

Author(s): Rudolf Grünbichler, Raphael Krebs
Subject(s): Social Sciences, Economy
Published by: Udruženje ekonomista i menadžera Balkana
Summary/Abstract: Digitization in enterprises enables the application of artificial intel ligence, especially machine learning. One area of use for artificial intelligence is in the creation of an insolvency forecast for companies. With a literature re view, the current status on the usage of artificial intelligence in insolvency fore casting is presented. For this purpose, the two databases Scopus and Web of Science are searched for scientific papers on the topic of artificial intelligence and corporate insolvencies to get an up-to-date impression of the status quo. A particular focus is placed on small and medium-sized companies. It is shown that artificial intelligence methods provide better results compared to classical methods. The research reveals that the most important algorithms related to the prediction of potential corporate insolvency are artificial neural networks, decision trees and support vector machines as well as hybrid models.

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