AI in Finance: Challenges, Techniques and Opportunities

40 Pages Posted: 29 Jul 2021

See all articles by Longbing Cao

Longbing Cao

University of Technology Sydney

Date Written: June 18, 2021

Abstract

AI in finance broadly refers to the applications of AI techniques in financial businesses. This area has attracted attention for decades with both classic and modern AI techniques applied to increasingly broader areas of finance, economy and society. In contrast to either discussing the problems, aspects and opportunities of finance that have benefited from specific AI techniques and in particular some new-generation AI and data science (AIDS) areas or reviewing the progress of applying specific techniques to resolving certain financial problems, this review offers a comprehensive and dense roadmap of the overwhelming challenges, techniques and opportunities of AI research in finance over the past decades. The landscapes and challenges of financial businesses and data are firstly outlined, followed by a comprehensive categorization and a dense overview of the decades of AI research in finance. We then structure and illustrate the data-driven analytics and learning of financial businesses and data. A comparison, criticism and discussion of classic vs. modern AI techniques for finance follows. Finally, the open issues and opportunities to address future AI-empowered finance and finance-motivated AI research are discussed.

Keywords: AI, data science, data analytics, advanced analytics, machine learning, statistics, mathematics, modeling, finance, economics, FinTech, AI in FinTech, AI in finance, smart FinTech

JEL Classification: C00, C10, C20, C30, C40, C50, C60, G00

Suggested Citation

Cao, Longbing, AI in Finance: Challenges, Techniques and Opportunities (June 18, 2021). Available at SSRN: https://ssrn.com/abstract=3869625 or http://dx.doi.org/10.2139/ssrn.3869625

Longbing Cao (Contact Author)

University of Technology Sydney ( email )

15 Broadway, Ultimo
PO Box 123
Sydney, NSW 2007
Australia

HOME PAGE: http://www.datasciences.org

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