Artificial Intelligence in Financial Markets: Enhancing Risk Assessment and Decision-Making in Stockbrokering and Banking

Abstract

The use of AI in financial markets is rapidly changing both the way risks are evaluated and decisions are made, mainly in stockbrokers and banks. In this journal, we look at the many roles of AI, such as machine learning, natural language processing, and predictive analytics, in improving financial decisions and risk management. By studying present techniques and examining case studies, the study describes how AI supports credit scoring, detects fraud, controls trading, improves how portfolios are managed, and follows regulations. In addition, it studies the impact of AI-powered automation on the day-to-day running of banking and the importance this brings for interacting with customers, handling risks, and providing investment advice. Additionally, the journal talks about main issues such as how models are explained, biased data, cybersecurity, and regulations. Experts are looking at new trends such as explainable AI and quantum computing to see how they might change the business of finance. The study ends with a set of valuable rules for banks, policymakers, and researchers who want to make the most of AI in global finance.