The Role of AI in Shaping Future Financial Markets

Abstract

This thesis explores how artificial intelligence (AI) is changing the way financial markets work. It explains how AI is being used in different areas such as trading, risk management, fraud detection, customer service, and financial planning. AI helps banks and businesses make faster and better decisions by analyzing large amounts of data. It also makes services more efficient and accessible. However, the thesis also points out the risks of using AI—such as incorrect outputs (called “AI hallucinations”), bias in decision-making, and data privacy issues. The main conclusion is that while AI has great potential to improve financial systems, it must be used carefully. Human supervision, ethical guidelines, and strong data protection are essential. AI should support human workers, not replace them, and should be designed to be fair, transparent, and safe for everyone.