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The emergence of agentic artificial intelligence (AI) represents a fundamental transformation in financial markets, characterized by autonomous systems capable of reasoning, planning, and adaptive decision-making with minimal human…

AI services are known to have unstable behavior when subjected to changes in data, models or users. Such behaviors, whether triggered by omission or commission, lead to trust issues when AI works with humans. The current approach of…

Human-Computer Interaction · Computer Science 2023-02-21 Biplav Srivastava , Kausik Lakkaraju , Mariana Bernagozzi , Marco Valtorta

Financial markets are influenced by human behavior that deviates from rationality due to cognitive biases. Traditional reinforcement learning (RL) models for financial decision-making assume rational agents, potentially overlooking the…

Machine Learning · Computer Science 2026-01-14 Liu He

The opaqueness of many complex machine learning algorithms is often mentioned as one of the main obstacles to the ethical development of artificial intelligence (AI). But what does it mean for an algorithm to be opaque? Highly complex…

Machine Learning · Computer Science 2025-08-20 Andrés Páez

This paper investigates the impact of the adoption of generative AI on financial stability. We conduct laboratory-style experiments using large language models to replicate classic studies on herd behavior in trading decisions. Our results…

General Finance · Quantitative Finance 2025-10-03 Anne Lundgaard Hansen , Seung Jung Lee

Artificial intelligence (AI) enables machines to learn from human experience, adjust to new inputs, and perform human-like tasks. AI is progressing rapidly and is transforming the way businesses operate, from process automation to cognitive…

Machine Learning · Computer Science 2021-12-17 Ambreen Hanif

With the continuous development of artificial intelligence technology, using machine learning technology to predict market trends may no longer be out of reach. In recent years, artificial intelligence has become a research hotspot in the…

Portfolio Management · Quantitative Finance 2024-04-30 Shuochen Bi , Wenqing Bao , Jue Xiao , Jiangshan Wang , Tingting Deng

We consider state of the art applications of artificial intelligence (AI) in modelling human financial expectations and explore the potential of quantum logic to drive future advancements in this field. This analysis highlights the…

Computational Finance · Quantitative Finance 2025-10-08 Fabio Bagarello , Francesco Gargano , Polina Khrennikova

Artificial intelligence develops techniques and systems whose performance must be evaluated on a regular basis in order to certify and foster progress in the discipline. We will describe and critically assess the different ways AI systems…

Artificial Intelligence · Computer Science 2016-08-23 Jose Hernandez-Orallo

Artificial Intelligence (AI) systems are increasingly used in high-stakes domains of our life, increasing the need to explain these decisions and to make sure that they are aligned with how we want the decision to be made. The field of…

Artificial Intelligence · Computer Science 2023-06-28 Sofie Goethals , David Martens , Theodoros Evgeniou

The lack of explainability of Artificial Intelligence (AI) is one of the first obstacles that the industry and regulators must overcome to mitigate the risks associated with the technology. The need for eXplainable AI (XAI) is evident in…

Computers and Society · Computer Science 2025-02-24 Georgios Pavlidis

Artificial intelligence (AI) makes decisions impacting our daily lives in an increasingly autonomous manner. Their actions might cause accidents, harm, or, more generally, violate regulations. Determining whether an AI caused a specific…

Artificial Intelligence · Computer Science 2023-08-14 Johannes Schneider , Frank Breitinger

It is known that big data analytics and AI pose a threat to privacy, and that some of this is due to some kind of "black box problem" in AI. I explain how this becomes a problem in the context of justification for judgments and actions.…

Computers and Society · Computer Science 2025-09-12 Vincent C. Müller

Algorithmic trading, due to its inherent nature, is a difficult problem to tackle; there are too many variables involved in the real world which make it almost impossible to have reliable algorithms for automated stock trading. The lack of…

Artificial Intelligence · Computer Science 2020-01-28 Abhishek Nan , Anandh Perumal , Osmar R. Zaiane

Black box systems for automated decision making, often based on machine learning over (big) data, map a user's features into a class or a score without exposing the reasons why. This is problematic not only for lack of transparency, but…

Artificial Intelligence · Computer Science 2018-06-27 Dino Pedreschi , Fosca Giannotti , Riccardo Guidotti , Anna Monreale , Luca Pappalardo , Salvatore Ruggieri , Franco Turini

The black-box nature of artificial intelligence (AI) models has been the source of many concerns in their use for critical applications. Explainable Artificial Intelligence (XAI) is a rapidly growing research field that aims to create…

Cryptography and Security · Computer Science 2023-06-13 Gaith Rjoub , Jamal Bentahar , Omar Abdel Wahab , Rabeb Mizouni , Alyssa Song , Robin Cohen , Hadi Otrok , Azzam Mourad

Artificial Intelligence (AI) models have reached a very significant level of accuracy. While their superior performance offers considerable benefits, their inherent complexity often decreases human trust, which slows their application in…

Machine Learning · Computer Science 2025-04-25 Pierre-Daniel Arsenault , Shengrui Wang , Jean-Marc Patenande

Although "black box" models such as Artificial Neural Networks, Support Vector Machines, and Ensemble Approaches continue to show superior performance in many disciplines, their adoption in the sensitive disciplines (e.g., finance,…

Artificial Intelligence · Computer Science 2019-05-31 Sheikh Rabiul Islam , William Eberle , Sid Bundy , Sheikh Khaled Ghafoor

With rapid transformation of technologies, the fusion of Artificial Intelligence (AI) and Machine Learning (ML) in finance is disrupting the entire ecosystem and operations which were followed for decades. The current landscape is where…

Artificial Intelligence · Computer Science 2024-10-22 Animesh Kumar

Uses of artificial intelligence (AI), especially those powered by machine learning approaches, are growing in sectors and societies around the world. How will AI adoption proceed, especially in the international security realm? Research on…

Computers and Society · Computer Science 2023-06-30 Michael C. Horowitz , Lauren Kahn