AI in Finance: When artificial intelligence is revolutionizing the financial sector

Artificial intelligence (AI) is now ubiquitous in our daily lives, and the financial sector is no exception. AI technology continues to develop and establish itself as an essential element for financial market players. This article deciphers the challenges of this digital revolution for companies and investors.

The rise of semiconductors dedicated to AI

Thanks to artificial intelligence, new semiconductor manufacturers are enjoying dazzling success. Marvell Technology shares, for example, jumped 25.54 % following statements by its CEO, Matt Murphy, about AI-related revenues in fiscal year 2024. These figures would have doubled compared to the year. previous year and will continue to grow rapidly in the years to come.

The growing popularity of AI-based cryptocurrencies

The successful development of ChatGPT by OpenAI has sparked a frenzy around artificial intelligence. AI cryptocurrency platforms and their native tokens are enjoying unprecedented popularity, with traders betting on AI as the next big blockchain innovation. Tokens linked to AI projects have thus exploded since the beginning of 2023.

Stock price prediction using AI

Researchers at the University of Florida attempted to use ChatGPT to assess whether a news article headline was good, bad, or had no effect on US stock prices. By comparing the results obtained by the AI with the actual movements of the stocks concerned, it was found that ChatGPT version 4 is better at spotting market sentiment than other methods designed for it, as well as older versions of ChatGPT.

Gary Kazantsev and BloombergGPT: the rising star of generative artificial intelligence

Gary Kazantsev, a professor at Columbia University, became a celebrity following the prowess of the generative artificial intelligence ChatGPT. In particular, he led the efforts of the media and financial group Bloomberg for more than 10 years around quantitative technologies and contributed to the creation of BloombergGPT, a highly anticipated model of generative AI.

Organizational changes induced by AI

The gradual arrival of AI in the financial sector is also leading to changes in the organizational structures of companies. For example, at iA Financial Group, two senior executives will soon be retiring and the company is already announcing strategic adjustments in anticipation of these departures.

The benefits of AI for businesses and investors

Optimization of risk management

• Better data analysis to predict market trends.
• Identification of low risk investment opportunities.
• Detection of fraud and financial anomalies in real time.

Improved operational efficiency

• Automation of administrative and financial processes.
• Reduction of operational costs thanks to the optimization of human and material resources.
• Acceleration of decision-making thanks to a better understanding of financial issues.

Unexplored innovation potential

• Development of new financial products and services based on
  

  Sources

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  • https://www.surf-finance.com/quand-lia-rencontre-la-blockchain-ces-cryptos-pourraient-etre-les-prochaines-a-exploser.html
  • https://www.msn.com/fr-fr/finance/other/gr%C3%A2ce-%C3%A0-lia-le-g%C3%A9ant-des-processeurs-nvidia-approche-les-mille-milliards-de-dollars-de-capitalisation/ar-AA1bGKph
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