Impact of AI-Powered Investment Algorithms on Market Efficiency
Authors:-RB Nitish Kumar
Abstract-The integration of artificial intelligence (AI) into investment strategies has transformed financial markets by enhancing trading algorithms and decision-making processes. This research paper explores the impact of AI-powered investment algorithms on market efficiency, focusing on how these advanced technologies influence the speed, accuracy, and stability of financial markets. AI algorithms, including machine learning and deep learning models, have the potential to process vast amounts of data at unprecedented speeds, leading to more precise market predictions and trading decisions. However, the rapid adoption of AI also raises concerns about market volatility and the potential for new forms of systemic risk. This study evaluates empirical evidence on the performance of AI-driven trading systems, comparing their impact on market efficiency with traditional investment methods. Additionally, it addresses regulatory and ethical considerations related to the deployment of AI in finance. The findings aim to provide insights into the benefits and challenges of AI in investment strategies and its implications for future market dynamics and financial stability.
