Artificial intelligence for investment strategies
Author: Anil Dutt Miranda Title: Artificial Intelligence for Investment Strategies Supervisor: Prof. Dr. Jörg Osterrieder Degree: Bachelor of Science University: Bern University of Applied Sciences Year: 2023 Status: Submitted
Summary Artificial intelligence has developed extraordinarily over the past years. The popula-tion appears to be very informed about the progress the industry has made. The im-pression, that the average person is informed about the development and progress derives from the presence of the topic in the media. However, if we would question the average person about the implementation and use of Artificial intelligence there would most likely still be a big gap in knowledge about how developed it actually is. Also investing has become a regular topic in news and media. The population is way more interested in investing than it ever was today, and the industry has grown ex-ceptionally, the use of Artificial intelligence has contributed hugely towards this growth. The goal of this Bachelor Thesis is to evaluate how AI is being used in in-vestment strategies in reality. It also aims to disclose how much people know about artificial intelligence in investment strategy and compare it to how it is implemented in reality. Finally, it ought to be an in-depth examination that aids the reader in be-coming knowledgeable about the subject.
Abstract Lately the whole world has been talking about artificial intelligence (AI), the news, the media and individuals have created a great sensation out of artificial intelligence be-cause of the sheer possibilities it provides. For years Artificial Intelligence has thriven to become a driving force in finance and investments. Today Artificial Intelligence is indispensable in finance because of the various advantages it comes along with. This quantitative study aims to disclose how Artificial Intelligence is improving in-vestment strategies and discovering how different techniques are applied to different fields. Furthermore, it will show to what extent people are informed about the use of AI in various fields of finance. At the beginning of the paper the theoretical founda-tions are displayed, which will provide a basic understanding of what artificial intelli-gence is and how it linked to investment strategies. A literature review is following the foundations, which explores possible applications of artificial intelligence in the fields of portfolio optimization, algorithmic trading, sentiment analysis, risk management, fraud detection, natural language processing and pattern recognition. Subsequently a Survey will provide information on to what extent people are informed with the top-ic. The study will lastly compare the gathered data from the literature review and the survey and draw a conclusion. The result of the study shows that in general people do not know much about how artificial intelligence influences. The participants would be asked about if they think that AI has a positive impact on Investing, what fields could be impacted by AI and possible advantages or disadvantages. The participant generally seems to have a clue about the use of AI in finance. However, when asking about the possible fields AI could be used in and their advantages or disadvantages, the participants showed a large knowledge gap.