The Role of Artificial Intelligence in Modern Finance: Current Applications and Future Prospects

Sheng Wu

doi:10.54254/2755-2721/2025.18825

Research Article

Open access

Published on 26 December 2024

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Wu,S. (2024). The Role of Artificial Intelligence in Modern Finance: Current Applications and Future Prospects. Applied and Computational Engineering,120,17-22.

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The Role of Artificial Intelligence in Modern Finance: Current Applications and Future Prospects

Sheng Wu *^,1,

¹ College of Professional Studies, Northeastern University, Boston, Massachusetts, United States of America

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2755-2721/2025.18825

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.

Keywords

AI, Finance, portfolio management, risk management, algorithmic trading

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Cite this article

Wu,S. (2024). The Role of Artificial Intelligence in Modern Finance: Current Applications and Future Prospects. Applied and Computational Engineering,120,17-22.

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About volume

Volume title: Proceedings of the 5th International Conference on Signal Processing and Machine Learning

Conference website: https://2025.confspml.org/

ISBN：978-1-83558-809-3(Print) / 978-1-83558-810-9(Online)

Conference date: 12 January 2025

Editor：Stavros Shiaeles

Series: Applied and Computational Engineering

Volume number: Vol.120

ISSN：2755-2721(Print) / 2755-273X(Online)

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