Abstract: Artificial Intelligence (AI) is more transforming financial markets to enable sophistic forms of computerized stock trading. Although AI-based models have been identified to have enormous potential in improving their forecast accuracy, trading efficiency and portfolio returns, they are also accompanied by high measures of risk bearing volatility, bias and market stability. In this paper, automated stock trading methods based on AI are considered with specific focus on opportunity and risk to implement. The different AI architectures such as deep learning models and hybrid models are bench-marked based on historical stock and exchange data, based on their predictive performance, risk-adjusted returns, and responsiveness to various market conditions. The findings offer a clear insight to policymakers, traders and researchers to consider the possibility of AI to use in the future of the trading exchange. Keywords: Automated Stock Trading, Algorithmic Trading, Financial Forecasting, Risk Management, Market Volatility, Predictive Analytics.
Indian Journal of Science and Research (Fri,) studied this question.