Year: 2026
Type: article
Abstract: This study attempts to look into the ethical issues involved in AI integration in Nepal’s capital markets, which have unique characteristics of the market structure, including a herd-prone retail sector, behavioral herding, and underdeveloped technological infrastructure. By conducting theoretical and policy-based analyses that will integrate Nepal's AI policy, NRB guidelines, OECD guidelines, and EU AI Act, we formulate the Nepal Ethical Capital Market AI (NECMA) framework based on the Technology-Organization-Environment (TOE) framework. The paper finds that ethical governance is more than compliance; rather, it is a pre-requisite for the sustainable development of the financial sector in emerging economies. It is shown that the specific structural vulnerabilities of Nepal call for a sequential technology, environment, organization, and ethics filter.
Authors: Shashank Shree Neupane, Bibek Ropakhati
Institution: Westcliff University
Language: English
Subfield: Artificial Intelligence
Field: Computer Science
Domain: Physical Sciences
Open Access status: diamond
OpenAlex ID: W7204249211