Application and Challenge of Artificial Intelligence in Stock Investment

Authors

  • Rujing Guo School of Xingzhi, Xi'an University of Finance and Economics

DOI:

https://doi.org/10.62177/apemr.v2i2.288

Keywords:

Artificial Intelligence, Stock Investing, Market Volatility

Abstract

This paper examines the application and challenges of AI in stock investing. AI is transforming stock investing through data mining, predictive modeling, and trading decisions. It processes multi-source data, captures real-time market sentiment, and identifies investment opportunities using deep learning models. The widespread use of automated trading systems and intelligent advisors has enhanced trading efficiency and returns. However, AI also faces challenges such as algorithmic "black boxes," model failures, and system issues.Through case studies, this paper analyzes the practical impact of AI in data mining, predictive modeling, and automated trading, and discusses the constraints of technology application. It proposes a technology optimization path combining data enhancement and cross-validation, and designs an auditable, transparent decision-making mechanism. Additionally, the paper explores the potential of quantum computing and blockchain in finance, offering theoretical insights and practical guidance for the industry to navigate the opportunities and challenges of intelligent investing.

Downloads

Download data is not yet available.

References

Fama E F. Efficient capital markets: A review of theory and empirical work[J]. Journal of Finance, 1970, 25(2): 383-417. DOI: https://doi.org/10.1111/j.1540-6261.1970.tb00518.x

Murphy J J. Technical Analysis of the Financial Markets[M]. Penguin, 1999.

Atsalakis G S, Valavanis K P. Surveying stock market forecasting techniques – Part II: Soft computing methods[J]. Expert Systems with Applications, 2009, 36(3): 5932-5941. DOI: https://doi.org/10.1016/j.eswa.2008.07.006

Huang W, Nakamori Y, Wang S-Y. Forecasting stock market movement direction with support vector machine[J]. Computers & Operations Research, 2005, 32(10): 2513-2522. DOI: https://doi.org/10.1016/j.cor.2004.03.016

Fischer T, Krauss C. Deep learning with long short-term memory networks for financial market predictions[J]. European Journal of Operational Research, 2018, 270(2): 654-669. DOI: https://doi.org/10.1016/j.ejor.2017.11.054

Li F. Textual analysis of corporate disclosures: A survey of the literature[J]. Journal of Accounting Literature, 2010, 29: 143-165.

Biais B, Foucault T, Moinas S. Equilibrium algorithmic trading[J]. Journal of Finance, 2015, 70(1): 419-457.

Dixon M, et al. Machine learning for financial trading: From theory to practice[J]. Journal of Financial Data Science, 2020, 2(3): 1-29.

Downloads

How to Cite

Guo, R. (2025). Application and Challenge of Artificial Intelligence in Stock Investment. Asia Pacific Economic and Management Review, 2(2). https://doi.org/10.62177/apemr.v2i2.288

Issue

Section

Articles