№ 8/2018

Fìnansi Ukr. 2018 (8): 20–31

MARKET OF FINANCIAL SERVICES

TSYGANOV Sergii , APALKOVA Viktoriia ¹

¹Kyiv University of Market Relations, Research ID : http://www.researcherid.com/rid/P-7369-2018
OrcID ID : https://orcid.org/0000-0001-5185-7571

Development of artificial intelligence: evolutional processes in the international financial market

The article considers the main drivers for the development of artificial intelligence (AI) in the context of fundamental changes in the international financial market. The authors highlight the key areas for the AI application in the field of finance, in particular, trading, financial analysis, personnel training, customer interaction, security and defense, decision-making at middle and lower management level; risk assessment and compliance. One of the most widespread technologies on the world stock exchanges is currently the algorithmic trading, which has been in use for more than ten years and is steadily gaining in popularity. It is discovered that digital technology of artificial intelligence complements the global financial environment with the functions of a new knowledge transfer, reducing traditional risks, but creating new challenges for effective management. The authors identify the positive and negative consequences of the AI development in the financial sector. It is proved that an increased competition between IT companies (Google, Microsoft, etc.) in the field of financial services leads to the emergence of new business models, the refusal of hierarchy and the automation of making financially important decisions. The introduction of the AI radically changes the company's internal business landscape: a business model, convenience for customers, costs, profitability, and above all competitiveness. The artificial intelligence lays the foundation for the next era of the industrial revolution. The changes will occur not only in the technological provision of investment and financial process but also in the nature of making decisions because they will be taken by machines. Human capital will confront the intensified challenges in the development of financial market ideology and provision of fair distribution.

Keywords:international financial market, artificial intelligence, IT-companies, algorithmic trading

JEL: F39, F42, F43, G15

TSYGANOV S. . Development of artificial intelligence: evolutional processes in the international financial market / S. TSYGANOV, V. Apalkova // Фінанси України. - 2018. - № 8. - C. 20-31.

Article original in Ukrainian (pp. 20 - 31)

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