Smart Finance Unveiled: Navigating the Nexus of Artificial Intelligence and Machine Learning in the Financial Landscape

Smart Finance Unveiled: Navigating the Nexus of Artificial Intelligence and Machine Learning in the Financial Landscape

Kapil Kumar Aggarwal, Ravneet Kaur, Atul Sharma, Sachin Ghai
Copyright: © 2024 |Pages: 10
DOI: 10.4018/979-8-3693-3264-1.ch007
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Abstract

Integrating artificial intelligence and machine learning technology with the financial sector has resulted in the emergence of smart finance. This chapter summarizes the complex interconnection between artificial intelligence, machine learning, and the dynamic environment of financial systems. This chapter examines the expanding use of algorithms in financial decision-making and analyzes how artificial intelligence and machine learning may be applied. These applications include improving algorithmic trading techniques, enhancing the accuracy of credit scoring, optimizing risk assessment, and providing personalized customer care. Nevertheless, incorporating technology has challenges, encompassing ethical deliberations and regulatory obstacles. The chapter also explores future developments, including topics such as explainable AI, integration of blockchain technology, and the possible influence of quantum computing on financial paradigms. This research examines the complex relationship between artificial intelligence, machine learning, and the future direction of smart finance.
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Introduction

Artificial Intelligence is a cutting-edge technology that significantly changes several fields, including academics, industry, and society. AI, short for artificial intelligence, refers to replicating human intellect in computers (R. Li, 2020). It comprises many abilities, including natural language processing, problem-solving, machine learning, and robotics. The multidisciplinary nature of AI research combines computer science, cognitive psychology, mathematics, and engineering, leading to innovative developments that question conventional paradigms. Researchers explore the complexities of algorithm creation, data analytics, and neural network topologies to improve AI systems' learning and decision-making abilities. The emphasis on explainable AI and ethical issues in implementing AI highlights the significance of doing research responsibly. The research efforts in AI are crucial in influencing the future of technology and its influence on human civilization as AI applications become more prevalent in several sectors, including healthcare, finance, and autonomous systems (Dwivedi et al., 2021). This paragraph introduces the topic of AI research and highlights its various aspects, focusing on how it is continuously driving innovation and transforming society.

Machine Learning is a fundamental aspect of the advancement of artificial intelligence, significantly changing how computers acquire knowledge and adjust their behaviour without the need for explicit instructions (Das et al., 2015). This multidisciplinary area combines ideas from statistics, computer science, and mathematics to create algorithms that enable computers to see patterns, make predictions, and enhance performance via learning (Paolanti & Frontoni, 2020). Machine learning research is a continuous pursuit to create more efficient, accurate, and scalable algorithms. This includes both classic supervised learning methods and state-of-the-art deep learning architectures. Researchers face difficulties such as ensuring the accuracy of data, choosing relevant features, and understanding how machine learning models work, all to improve the capacity of these models to perform well in different areas. With the increasing need for intelligent systems in various industries, machine learning research is expanding to tackle ethical concerns, fairness, and transparency in algorithmic decision-making. This paragraph offers a concise summary of the fundamental principles, difficulties, and changing aspects in the dynamic field of machine learning, setting the stage for further investigation in research publications.

The fusion of Artificial Intelligence and Machine Learning signifies a harmonious merging that enhances the capabilities of intelligent systems (Rokhsaritalemi et al., 2023). Artificial intellect (AI) is a comprehensive concept that simulates human intellect in computers. Machine Learning, on the other hand, is a subset of AI that aims explicitly to enable systems to learn and enhance their performance via experience. The interdependent connection between these two disciplines is crucial for pushing the boundaries of technology and nurturing breakthroughs in many sectors. When doing research, combining Artificial Intelligence and Machine Learning entails creating algorithms that can execute particular tasks and adapt and enhance their performance as time progresses. Deep learning, a subset of machine learning, has greatly facilitated this integration by utilizing neural network structures to extract complex patterns and representations from data (Y. Li et al., 2018). Researchers explore the complex relationship between algorithmic design, model training, and real-world applications to improve intelligent systems' efficiency, interpretability, and adaptability. Incorporating Artificial Intelligence and Machine Learning in research publications goes beyond theoretical frameworks, exploring practical applications, ethical issues, and the societal consequences of new technologies. The growing collaboration between AI and ML leads to significant advancements and innovative solutions for complicated problems. This highlights the close relationship between these two domains in determining the future of intelligent computing.

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