Description
Book SynopsisFollowing rapid technological advancements that have taken place throughout the late twentieth and early twenty-first centuries, this intriguing book provides a dynamic agenda for the study of artificial intelligence (AI) within finance. Through an in-depth consideration of the use of AI, it utilizes case study examples to investigate AI’s effectiveness within investment and banking.
Artificial Intelligence and Financial Behaviour examines to what extent AI can guide people to improve their financial wellbeing. It explores potential effects of, and problems with, specific technologies, as well as describing current regulatory considerations regarding the use of AI and machine learning. Chapters succinctly portray the impact AI may have on investor and trader behaviour.
This highly informative book will be beneficial for students and researchers studying behavioural and regulatory economics. It will also be immensely useful for financial regulators who are analysing problems from contemporary points of view.
Trade Review‘This is an excellent book focusing on the adaptive features of heuristic financial decision making. This will be an excellent resource for all those interested in the financial markets such as investors, policy makers, researchers and university students.’ -- Shigeyuki Hamori, Kobe University, Japan
Table of ContentsContents: Preface viii Introduction: Artificial intelligence should meet natural stupidity. But it cannot! 1 Riccardo Viale PART I AI AND BOUNDED RATIONALITY 1 Financial service providers, AI, satisficing, and the human touch in the market for financial nudges and boosts 30 Hersh Shefrin 2 The importance of structural rationality: understanding market institutions 51 Shyam Sunder 3 Bits of individual knowledge in bytes of machines 69 Shabnam Mousav and Mario Rasetti 4 Radical rationality allows coping with fundamental uncertainty on financial markets 89 Paolo Sironi 5 Integrating heuristics and learning in a computational architecture for cognitive trading 111 Remo Pareschi and Federico Zappone PART II AI AND MARKETS 6 Artificial intelligence and conduct in wholesale markets 137 Mark Yallop 7 Using AI to assess credit risk; developing a model 144 Umberto Filotto, Tommaso Giordani, Gian Paolo Stella and Filmon Teclai 8 Do we like robot? Consumers’ attitude towards the algorithm 156 Barbara Alemanni 9 Financial consumers, digital interfaces and decision aids 174 Peter D. Lunn 10 FOMO and Covid and Cryptos, oh my! 192 Steven Jon Kaplan 11 How AI is re-shaping the financial industry: lights, shades and perspectives 205 Paola Papanicolaou 12 54,000 PRIIPs KIDs – how to read them (all) 215 Adrien Amzallag 13 Machine learning and artificial intelligence for risk management 240 Edoardo Faletti Index
