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Financial failure represents one of the most significant challenges and risks faced by banks in the contemporary business environment. This has prompted experts to leverage digital technologies and artificial intelligence in predicting financial failure at an early stage, enabling corrective actions to be taken. In response to the need for Iraqi banks to enhance their ability to predict financial failure, this study aimed to investigate the effectiveness of digital technologies (automated accounting information systems, expert systems, and artificial intelligence networks) in increasing the accuracy of financial failure prediction in Iraqi banks. The study followed a descriptive-analytical methodology, utilizing a questionnaire as the data collection tool. The sample consisted of 96 participants, including managers, department heads, professionals, and employees responsible for financial failure prediction in 24 banks in Iraq. The study yielded several key findings, including a statistically significant relationship between the effectiveness of digital technologies used by Iraqi banks for financial failure prediction and the type of technology employed (automated accounting information systems, expert systems, and artificial intelligence networks). Moreover, the study revealed a statistically significant impact of the type of digital technology used on the improvement of financial failure prediction in Iraqi banks. Furthermore, the study highlighted a statistically significant relationship between the factors influencing the effectiveness of digital technologies in enhancing financial failure prediction in Iraqi banks and the type of technology employed (automated accounting information systems, expert systems, and artificial intelligence networks). Based on these findings, the study provides a set of recommendations to enhance the Iraqi banks' capacity to effectively utilize digital technologies for financial failure prediction and mitigate the likelihood of financial failure. Overall, this study contributes to the growing body of research on financial failure prediction and underscores the importance of digital technologies in enhancing the predictive capabilities of banks. The findings offer valuable insights for bank management, policymakers, and industry practitioners, enabling them to leverage digital technologies effectively and proactively address potential financial risks.
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