How AI has revolutionised stock markets

Abstract

The role of artificial intelligence (AI) in coming up with greater efficiency in stock markets together with improving market analysis and effective investment decision-making forms the basis of this research. This work seeks to assess both the problems and promises that AI has for contemporary financial markets. This method involves a secondary research methodology in which information collected from peer-reviewed articles, academic and editorial papers (2017- 2023), journals and pragmatic industry reports, along with reliable online sources of information was focused on. Moreover, data gathering and exchange within AI have been amplified to a great extent which have shown betterment in algorithmic trading, predictive analytics and healthy risk management. Simultaneously, the paper highlights challenges associated with higher market volatility, cybersecurity threats, algorithmic biases and some regulatory implications. In conclusion, this research found that stock markets had become more efficient by being data-driven due to the advent of AI. With proper regulation, ethical AI practices and human oversight to maximize the benefits and minimize pitfalls on certain risks will exist