The Role of Artificial Intelligence in Financial Decision Making : Analysis of how AI and machine learning algorithms are used to optimize trading strategies and improve investment decisions.

Background and
Justification of the Study

This research will explore the
transformative role of AI and machine learning in optimizing trading strategies
and enhancing investment decisions. By examining a diverse range of secondary
sources, the study aims to provide a comprehensive analysis of the current
state, benefits, limitations, and future potential of AI in financial
decision-making. This investigation will contribute to academic discourse while
offering valuable insights for practitioners and policymakers in the finance
sector.

Research
Questions:

1.     
How are AI and machine learning algorithms
currently being utilized to optimize trading strategies?

2.     
What impact do AI-driven trading strategies have
on the financial market’s efficiency and volatility?

3.     
In what ways can AI improve investment decisions
for individual and institutional investors?

4.     
What are the ethical and regulatory implications
of using AI in financial decision-making?

5.     
What are the limitations and challenges
associated with the adoption of AI in finance?

Study Design
A descriptive research
design approach will be employed in this study, enabling a detailed and
comprehensive examination of the relationship between AI and financial
decision-making. This approach allows for an in-depth exploration of how AI
technologies are applied in finance, their impacts, and the associated ethical
and regulatory considerations. By leveraging a wide array of secondary sources,
including academic journals, books, industry reports, conference proceedings, regulatory publications, and case studies, the research will offer a thorough and multi-faceted understanding of AI’s role in the financial sector.