Source: Freepik
The stock market. Many of you know it as a place that you could hope after years of studying and analyzing market trends to make a profit out of stocks. Even though these trends can be analyzed through people, it is largely unpredictable to know how a stock will turn out in a day, month, and year.
This is where artificial intelligence comes into play. Artificial intelligence can analyze trends in stocks and the market overall whether it is bullish or bearish and take into account many factors that go into a stock and predict its profit margins. A famous processor, Natural Language Processing (NLP) has played a marginal role in predicting stocks based on previous data sets.
NLP can mitigate volatility of stocks and have years worth of knowledge to take into consideration the market situation within just a few seconds. Unlike traditional methods, Artificial Intelligence actually can mitigate bias aswell by not complying with emotions, race, gender, or ethnicity when considering the market as a whole.
Artificial Intelligence as a whole can turn the complexities and countless knowledge of the market and help make it easier for the investors who want to make a profit. Though there are shortcomings as artificial intelligence is not 100% accurate and has also fallen victim to the unpredictability of the stock market just as humans in earlier cases.
However, artificial intelligence should be used as a tool for strategy rather than the savior for the investor’s financial investments. Otherwise, everyone would be using artificial intelligence to make profit through their investments, making the market even more unpredictable. We know for sure that artificial intelligence can play a vital role in helping the investor make financial decisions.
References
How AI is Transforming Stock Marketing Prediction. Damco Solutions. (2024, August 9). https://www.damcogroup.com/blogs/ai-in-stock-market-predicting-the-unpredictable-with-confidence