NAVIGATING MARKETS WITH AI: THE NEXT FRONTIER IN INVESTMENT STRATEGY
Abstract
The financial market is changing rapidly, and to sustain themselves in this dynamic investment world, investors need to adopt various strategies. Traditional investment tactics rely entirely on human intuitions and historical data, which may fail to keep pace with the ever-changing nature of investment. If someone fails to adopt the need-based strategies, they will be kept in the market. Investors need more complex tools and approaches to make sound investment decisions and withstand the fluctuating market environment. Technology has made it easier by providing these tools to analyze large amounts of data and identify trends, thus crafting prudent investment strategies. One of the blessings of technology that is changing the investment world dynamically is artificial intelligence (AI). Therefore, this research aims to investigate the multifaceted role of Artificial Intelligence in investment strategies, emphasizing its predictive capabilities, data management efficiencies, user engagement enhancements, practical applications, and emerging trends. This paper employs a qualitative approach with a significant focus on existing literature and case study analysis to give a comprehensive overview of the impact of AI on investment strategies. The analysis reveals that integrating AI into investment strategies is redesigning the investment landscape, offering unprecedented opportunities such as improved predictive capabilities and risk management, which help make informed decisions. The study's finding provides valuable insights for investors and financial institutions seeking to optimize their strategies with AI in an increasingly data-driven investment environment.
JEL Classification Codes: G11, G17, E44.
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