The Future of Finance

Abstract

This book chapter explores the applications and implications of artificial intelligence (AI) in the finance industry. The chapter examines significant areas where AI is utilized in finance, including trading, fraud detection, customer service, portfolio optimization, and risk management. Furthermore, the chapter explores AI's implications and future trends in finance. This would offer a comprehensive understanding of the applications and implications of artificial intelligence and its importance in financial aspects, including models and techniques awareness. Design/methodology/approach: AI use in finance will be comprehensively examined by a review of literature, industry reports, and case studies. The advantages of using AI in finance will be highlighted, for instance, cost reduction, improved efficiency, and decision-making. Existing literature on using AI in finance will be examined through future trends and AI adoption.

The Intersection of Ai and Quantum Computing in Financial Markets: A Critical Review

“…Machine learning algorithms, deep neural networks, and natural language processing are at the forefront of AI applications in finance (LeCun et al, 2015). These methods have dramatically improved the state-of-the-art in various domains such as financial analysis, fraud detection, trading, and risk management (Sharma, 2023). For instance, machine learning algorithms have been used for sentiment analysis to develop market-neutral trading strategies, while deep neural networks have been employed for optimal market making in response to market conditions (Wang et al, 2021;Gasperov et al, 2021).…”

“…For instance, machine learning algorithms have been used for sentiment analysis to develop market-neutral trading strategies, while deep neural networks have been employed for optimal market making in response to market conditions (Wang et al, 2021;Gasperov et al, 2021). Additionally, natural language processing has been utilized for customer service and portfolio optimization (Sharma, 2023). The achievements and advancements in AI for financial analysis have been substantial.…”

“…The achievements and advancements in AI for financial analysis have been substantial. AI has significantly impacted various aspects of financial analysis, including governance, revenue raising, pooling, and strategic purchasing (Sharma, 2023;Adaga et al, 2024). Furthermore, AI has been instrumental in predictive analytics, risk management, and automation, revolutionizing financial processes (Berikashvili, 2024).…”