Impact of Artificial Intelligence on Financial Markets: Possibilities & Challenges

Abstract

Man-made intelligence is the course of human insight executed by machines. Artificial intelligence advances the maintainable and robust utilization of assets. Information-driven organizations can upgrade choices and empower more exact expectations (Anastasi et al., 2021). In particular, a further developed computerized change procedure creates information from enormous datasets. In this way, executing artificial intelligence cycles will further develop bank representatives' efficiency. This paper includes monetary and non-monetary data to acquire a dependable image of organizations' presentations, and the yearly report is one of the principal hotspots for the dynamic course of financial backers in the monetary market. Hence, this exploration depends on the examination of 130 yearly reports for each of the 15 Jordanian-recorded banks from the timeframe of 2014-2022. Results suggested that AI has revolutionized algorithmic trading in financial markets. Algorithmic trading is the practice of using automated, computer-based systems to execute high-frequency and complex trading strategies. AI-driven trading algorithms can analyze massive volumes of historical and real-time data, identify patterns, and make split-second trading decisions. Results also suggest a clear upward trend in the increase in AI opportunities over the years, with values generally increasing from left to right. In 2014, the rise in AI opportunities was relatively low, at around 5.4. From 2015 to 2017, there was a steady increase in AI opportunities, with a more noticeable upward trend in 2017. The growth continued to accelerate from 2018 to 2022, with the most significant increase observed in 2022.