The Impact of Artificial Intelligence on Financial Markets
Marat, Yerkebulan (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025051612475
https://urn.fi/URN:NBN:fi:amk-2025051612475
Tiivistelmä
This thesis examines how financial markets are being transformed by artificial intelligence (AI) with particular reference to trading strategies and market efficiency. It employs a documentary research method to note how AI has transcended rule-based systems to machine learning, utilized in automating trades, enhancing price discovery, and minimizing costs.
The paper integrates financial theory, such as Efficient Market Hypothesis, with an appreciation for algorithmic trading through AI and concludes that AI enhances liquidity and trading speed at the price of "black-box" transparency, systemic risk, and ethical concerns over bias and anonymity.
The findings state that while AI supplements, robust risk management and regulatory oversight are required to address these matters. Suggestions are made for explainable AI models, standardized reporting, and integration into risk management frameworks of AI-specific measures to guide practitioners and policymakers.
The paper integrates financial theory, such as Efficient Market Hypothesis, with an appreciation for algorithmic trading through AI and concludes that AI enhances liquidity and trading speed at the price of "black-box" transparency, systemic risk, and ethical concerns over bias and anonymity.
The findings state that while AI supplements, robust risk management and regulatory oversight are required to address these matters. Suggestions are made for explainable AI models, standardized reporting, and integration into risk management frameworks of AI-specific measures to guide practitioners and policymakers.