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
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