A new era of financial services: How AI enhances investment efficiency

Abstract

Financial investment is an important part of the modern economy, promoting economic growth and wealth accumulation through the efficient allocation of capital. However, with the rapid development of global financial markets, the investment environment has become increasingly complex. Investors not only need to cope with a large amount of data and information, but also to capture market opportunities and avoid risks in a timely manner. Traditional investment analysis methods and tools are often overwhelmed when dealing with these complexities.

Over the past period of time, the rapid advancement of artificial intelligence (AI) technology has brought new hope to financial investment (Holzinger et al., 2023). Through its powerful data processing capabilities, pattern recognition, and predictive analytics, AI is able to cope with the complexity and dynamics of the financial market, effectively enhancing the efficiency of traditional financial institutions and demonstrating great potential and broad application prospects.

Financial complex systems are networks of multiple interconnected financial entities and activities that exhibit complex interactions and dependencies. These systems typically exhibit nonlinear behavior, dynamic evolution, and have self-organizing features. Traders, financial firms, and investors, as the core elements of financial complex systems, together constitute the operating mechanism of financial investment markets through complex interactions and information exchange.

In this study, we will discuss how AI technology can empower financial investments (Ahmed et al., 2022) to enhance their efficiency from the perspective of financial complex systems and analyze their limitations and potential drawbacks from a new perspective. The rapid development and application of AI technology, especially in the sector of financial investment, not only foretells a fundamental change in the way the financial market operates, but also strengthens the technological foundation and clarifies the potential direction for the future development of the financial industry. Digital intelligence (Vijayakumar et al., 2022) finance will accelerate into a new era.

The wide application of AI in financial investment has significantly enhanced the efficiency of interconnected financial entities and markets within the financial ecosystem, injecting new vitality into the financial sector. For traders, AI technology aids in trend prediction, portfolio optimization, and real-time decision-making, greatly simplifying complex trading activities in an information-intensive era. For financial institutions, AI-driven intelligent customer service systems and RPA effectively enhance service efficiency while substantially reducing operational costs. For investors, large models improve the ability to collect and analyze financial information and data, thereby enhancing the quality of participation and decision-making in financial investments.

AI has injected boundless vitality into financial technology, significantly enhancing the efficiency of financial investments, optimizing industry services, and increasingly emerging as a key force for future changes in the financial industry. Looking ahead, as AI technology continues to advance and innovate, its application in financial investments will become more extensive and profound. As integral components of the financial complex system, traders, financial institutions, investors, and financial market regulators must collaborate closely to address challenges such as over-reliance on AI, algorithmic spoofing, model hallucinations, and legal and ethical risks. By exploring solutions to these risks, they can promote the healthy and sustainable development of the financial investment sector and usher financial services into a new era.

Zhiyi Liu: Conceptualization; data analysis; writing—original draft. Kai Zhang: Data collection; review of literature; data analysis. Hongyi Zhang: Supervision; coding.

The authors declare no conflict of interest.

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