Theory and application of artificial intelligence in financial industry

Yuxin Li; Jizheng Yi; Huanyu Chen; Duanxiang Peng; Yuxin Li; Jizheng Yi; Huanyu Chen; Duanxiang Peng

doi:10.3934/DSFE.2021006

Data Science in Finance and Economics

2021, Volume 1, Issue 2: 96-116. doi: 10.3934/DSFE.2021006

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Theory and application of artificial intelligence in financial industry

1.
College of Computer and Information Engineering, Central South University of Forestry and Technology, Changsha 410004, China
2.
Institute of Artificial Intelligence Application, Central South University of Forestry and Technology, Changsha 410004, China

Received: 07 May 2021 Accepted: 16 June 2021 Published: 21 June 2021
JEL Codes: O33, G15

Artificial Intelligence (AI) is deemed to be the commanding point of science and technology in the next era. In recent years, with the enhancement of computer computing power, the improvement of the quantity and quality of big data, and the important breakthroughs in many research fields such as machine learning and speech recognition, AI technology has developed rapidly and has been widely used in all walks of life. In the financial industry, the application of AI technology in risk control, marketing, customer service, transaction, operation, and product optimization of financial institutions is becoming increasingly mature, and some new business models have been created. Starting from the application status and significance of AI in the international financial field, this paper expounds on the application, status quo, and development trend of AI in the financial industry. Then, in view of the risks and practical challenges existing in the development process of AI, based on the reality of international financial development, this paper summarizes the measures to promote the in-depth, healthy, and sustainable development of AI in the financial market. This paper aims to let readers understand the development status of AI in the financial field, and also provide theoretical reference for scholars in this field.
- Artificial Intelligence (AI),
- financial market,
- financial risk,
- application trend,
- risk prevention
Citation: Yuxin Li, Jizheng Yi, Huanyu Chen, Duanxiang Peng. Theory and application of artificial intelligence in financial industry[J]. Data Science in Finance and Economics, 2021, 1(2): 96-116. doi: 10.3934/DSFE.2021006

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Abstract

Artificial Intelligence (AI) is deemed to be the commanding point of science and technology in the next era. In recent years, with the enhancement of computer computing power, the improvement of the quantity and quality of big data, and the important breakthroughs in many research fields such as machine learning and speech recognition, AI technology has developed rapidly and has been widely used in all walks of life. In the financial industry, the application of AI technology in risk control, marketing, customer service, transaction, operation, and product optimization of financial institutions is becoming increasingly mature, and some new business models have been created. Starting from the application status and significance of AI in the international financial field, this paper expounds on the application, status quo, and development trend of AI in the financial industry. Then, in view of the risks and practical challenges existing in the development process of AI, based on the reality of international financial development, this paper summarizes the measures to promote the in-depth, healthy, and sustainable development of AI in the financial market. This paper aims to let readers understand the development status of AI in the financial field, and also provide theoretical reference for scholars in this field.

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