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Hi, my name is
Alejandro Lopez-Lira.
I'm an assistant professor of
finance at the
University of Florida.
I'm here to give a lecture about
an overview of AI in finance.
0:15
So, first, we're going to cover
a brief introduction
to the topic.
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Artificial intelligence
(AI) refers to machines
mimicking human intelligence to
perform tasks and
make decisions.
It involves technologies like
machine learning and natural
language processing.
Of course, recently,
everybody has been taking
a look at this AI
via these models,
like ChatGPT or Co or Bard.
Of course, AI adoption in
financial services has grown
rapidly in recent years.
For example, some key
applications are,
of course, algorithmic trading,
risk management,
customer service,
credit scoring, and
portfolio management.
In algorithmic trading, a lot of
hedge funds use AI to make
trading decisions and
automatically execute
trades normally with
a human in the loop.
In risk management, there's
several applications
like detecting fraud,
analyzing risk patterns,
and predicting losses.
In customer services, we
have the AI chatbots and
robo-advisors for
customer engagement
and for customer advising.
Furthermore, in credit
scoring, we are, of course,
looking at new technologies like
automated credit approval
and risk assessment,
and in portfolio management,
we're looking at
automated rebalancing, optimized
investment strategies.
The key advantage of
artificial intelligence
is that it can
quickly analyze massive datasets
related to financial markets,
customers, products, etc.
Of course, this allows for
more accurate predictions,
calculations and decisions
vs human analysis.
The benefits include
improved efficiency,
better risk insights,
higher returns,
and more personalized
customer service.
Just a quick brief/glance
at the historical context.
