Artificial Intelligence in Financial Decision Making

Handbook of Financial Decision Making, Forthcoming

HKUST Business School Research Paper No. 2022-082

32 Pages Posted: 4 Oct 2022 Last revised: 13 Dec 2022

See all articles by Allen H. Huang

Allen H. Huang

Hong Kong University of Science and Technology - Department of Accounting

Haifeng You

Hong Kong University of Science & Technology (HKUST) - Department of Accounting

Date Written: May 16, 2022

Abstract

Artificial intelligence (AI), powered by machine learning algorithms, is capable of extracting information efficiently from big data and, therefore, has great potential for improving financial decision-making. In this chapter, we summarize several important applications of AI in this context. First, we review AI algorithms that extract information from unstructured data, with a focus on natural language processing algorithms. Next, we discuss how AI extracts and aggregates information from unstructured and structured data so as to facilitate financial decisions such as investment and FinTech lending. Lastly, we discuss the complementary roles of AI and humans in improving financial decision-making.

Keywords: Artificial Intelligence, Machine Learning, Natural Language Processing, Financial Decision Making, Equity Investment, Fintech Lending

JEL Classification: C38, C45, C61, D81, G11, G12, G14, G32

Suggested Citation

Huang, Allen H. and You, Haifeng, Artificial Intelligence in Financial Decision Making (May 16, 2022). Handbook of Financial Decision Making, Forthcoming , HKUST Business School Research Paper No. 2022-082, Available at SSRN: https://ssrn.com/abstract=4235511

Allen H. Huang (Contact Author)

Hong Kong University of Science and Technology - Department of Accounting ( email )

LSK Business School Building
HKUST
Clear Water Bay, Kowloon
Hong Kong

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

Haifeng You

Hong Kong University of Science & Technology (HKUST) - Department of Accounting ( email )

Clear Water Bay
Kowloon
Hong Kong

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