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Artificial Intelligence in Asset Pricing: Revolutionizing Financial Markets

XIBA Business Review

Volume 6 Issue 1

Published: 2023
Author(s) Name: J. Sahaya Shabu | Author(s) Affiliation: Xavier Institute of Business Administration, St. Xaviers College, Palayamkottai, Tamil Nadu.
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Abstract

This article explores the application of Artificial Intelligence (AI) in asset pricing, highlighting its potential to revolutionize the way financial markets operate. AI-based techniques, such as machine learning and deep learning, have the ability to process vast amounts of data, identify patterns, and generate predictive models for asset pricing. The article discusses key concepts, challenges, and practical applications of AI in asset pricing, including risk assessment, return prediction, portfolio optimization, and market efficiency. Furthermore, it examines the implications of AI adoption for investors, financial institutions, and regulators, emphasizing the need for responsible and ethical use of AI in the finance industry.

Keywords: Artificial Intelligence, Asset Pricing, Machine Learning, Deep Learning, Predictive Models, Risk Assessment, Return Prediction, Portfolio Optimization, Market Efficiency

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