Research

BY - Kuldeep Singh Waldia and Harshal Chandel
Title: "Artificial Intelligence and Financial Markets: A Systematic Literature Review"
Author/s: Yongqiang Chu, Chao Wei, Yiming Hu, Shiyu Wang
Year: 2020
Summary: This paper provides a comprehensive review of existing literature on the impact of artificial
intelligence (AI) in financial markets. It examines various AI techniques such as machine learning, natural
language processing, and deep learning, and their applications in trading, risk management, and
investment strategies. The review also discusses the challenges and opportunities presented by AI
adoption in financial markets.
Gap Identified: Despite the growing body of research in this area, there is a lack of consensus on the
effectiveness and long-term implications of AI in financial markets. Additionally, there is a need for
further investigation into the ethical and regulatory considerations surrounding AI implementation.
Research Methodology: The authors conducted a systematic literature review, analyzing a wide range of
academic papers, conference proceedings, and industry reports related to AI and financial markets. They
synthesized key findings and identified common themes and trends in the literature.
Managerial Implications: This review offers insights for financial practitioners and policymakers on the
potential benefits and risks associated with AI adoption in capital markets. It highlights the importance
of regulatory oversight and ethical guidelines to ensure responsible AI deployment.
2. Title: "Machine Learning in Finance: Theory and Applications"
Author/s: Marcos Lopez de Prado
Year: 2018
Summary: This paper explores the theory and practical applications of machine learning techniques in
finance. It covers topics such as algorithmic trading, risk management, portfolio optimization, and fraud
detection. The author discusses the challenges of applying machine learning in financial contexts,
including data limitations and model interpretability issues.
Gap Identified: One of the main gaps identified in the literature is the limited attention given to the
potential biases and pitfalls associated with machine learning models in finance. There is a need for
research that addresses these issues and develops robust methodologies for model evaluation and
validation.
Research Methodology: The paper provides a theoretical overview of machine learning algorithms and
their application to financial data. It also includes case studies and empirical examples to illustrate real-
world implementations of machine learning techniques in finance.
Managerial Implications: Financial practitioners can gain insights into the practical considerations and
challenges involved in implementing machine learning solutions in capital markets. The paper
emphasizes the importance of rigorous testing and validation procedures to ensure the reliability and
robustness of machine learning models.
3. Title: "Deep Learning in Finance"
Author/s: Gideon Kowadlo, Malte Krueger, Andrei Kirilenko
Year: 2019
Summary: This paper explores the applications of deep learning techniques in finance, focusing on areas
such as trading strategies, risk management, and market prediction. It provides an overview of deep
learning architectures such as convolutional neural networks and recurrent neural networks and
discusses their advantages and limitations in financial applications.
Gap Identified: The paper highlights the need for further research into the interpretability of deep
learning models in finance. Despite their high predictive accuracy, deep learning models often lack
transparency, making it challenging for practitioners to understand the underlying factors driving their
predictions.
Research Methodology: The authors review existing literature on deep learning in finance and provide
examples of successful applications in areas such as algorithmic trading and credit scoring. They also
discuss potential avenues for future research, including model interpretability and explainability.
Managerial Implications: Financial professionals can gain insights into the potential benefits and
limitations of deep learning techniques in capital markets. The paper underscores the importance of
developing interpretable models to enhance transparency and trust in deep learning-based financial
systems.
4. Title: "AI in Finance: A Survey"
Author/s: Stefan Feuerriegel, Heiner Lasi
Year: 2021
Summary: This paper presents a comprehensive survey of AI applications in finance, covering topics such
as robo-advisors, credit scoring, fraud detection, and algorithmic trading. It discusses the impact of AI on
various aspects of the financial industry, including investment management, risk assessment, and
customer service.
Gap Identified: One of the gaps identified in the literature is the need for research that explores the long-
term societal and economic implications of widespread AI adoption in finance. There is also a lack of
studies addressing the ethical and regulatory challenges associated with AI-driven financial systems.
Research Methodology: The authors conduct a survey of existing literature on AI in finance, synthesizing
key findings and identifying common themes and trends. They also provide insights into the current state
of AI adoption in the financial industry and discuss potential future developments.
Managerial Implications: The paper offers insights for financial practitioners and policymakers on the
strategic implications of AI adoption in capital markets. It highlights the importance of responsible AI
governance and the need for regulatory frameworks that promote transparency, fairness, and
accountability in AI-driven financial systems.

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BY - Kuldeep Singh Waldia and Harshal Chandel

Title: "Artificial Intelligence and Financial Markets: A Systematic Literature Review"

Author/s: Yongqiang Chu, Chao Wei, Yiming Hu, Shiyu Wang

2. Title: "Machine Learning in Finance: Theory and Applications"

Author/s: Marcos Lopez de Prado

3. Title: "Deep Learning in Finance"

Author/s: Gideon Kowadlo, Malte Krueger, Andrei Kirilenko

4. Title: "AI in Finance: A Survey"

Author/s: Stefan Feuerriegel, Heiner Lasi

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