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Full Description
Following 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.
Contents
Contents:
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