The Future of Behavioural Finance in an AI-Driven Trading World

3 Pages Posted: 18 Oct 2024

Date Written: September 11, 2024

Abstract

The rapid rise of artificial intelligence (AI) in financial markets, particularly through systematic and high-frequency trading, has transformed the landscape of modern finance. AI-driven algorithms dominate trading volumes on global exchanges, relying on vast amounts of data, computational power, and sophisticated models to exploit inefficiencies and capture short-term market movements. This shift has raised questions about the relevance of behavioural finance, which focuses on understanding how human psychology and cognitive biases influence market behaviour.

Keywords: behavioural finance, behavioural economics, AI trading

Suggested Citation

Ansari, Sophia Nicole, The Future of Behavioural Finance in an AI-Driven Trading World (September 11, 2024). Available at SSRN: https://ssrn.com/abstract=4954734 or http://dx.doi.org/10.2139/ssrn.4954734

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