AI and Big Data Analytics in Financial Markets

Abstract

Post liberalization there is tremendous impact of Artificial Intelligence (AI) and Big Data analytics in financial markets. In this paper, the author sought to understand how these technologies can change the face of business practices in areas like algorithmic trading and market risk management, market sentiment analysis and compliance. We consider how AI and Big Data are used in finance and the opportunities and problems these technologies offer and present in improving decision making, making markets more efficient, and offering competitive advantages to the actors within the financial market. Finally, this research identifies that while adopting AI and Big Data have strong advantages their implementation is linked with several significant risks including data privacy and security as well as ethical issues for further concerns.