The Role of Artificial Intelligence in Modern Finance: Current Applications and Future Prospects
Year: 2024
Type: article
Abstract: The finance industry has been radically re-invented by AI and is now providing novel solutions to a data-intensive and ever more sophisticated marketplace. In this article, AI applications in finance — portfolio management, risk management, and algorithmic trading are discussed in depth. The overview discusses some emerging techniques (including deep learning, synthetic data generation and deep reinforcement learning) and problems (such as interpretability, regulation compliance, algorithmic bias). The paper synthesizes existing research, outlining the limitations and prospects for AI technologies to enable financial decision-making, risk-taking and trading. The paper will address the promise and challenges of AI in finance, to contribute to the growing literature and inform scholars, practitioners and policymakers, leading to a more effective and resilient financial ecosystem.
Author: Sheng Wu
Institution: Northeastern University
Language: English
Subfield: Artificial Intelligence
Field: Computer Science
Domain: Physical Sciences
Open Access status: hybrid
OpenAlex ID: W4405821138