A Survey of Financial AI: Architectures, Advances and Open Challenges

Fuente: arXiv
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1. Verfasser: Liu, Junhua
Format: Preprint
Veröffentlicht: 2024
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author Liu, Junhua
author_facet Liu, Junhua
contents Financial AI empowers sophisticated approaches to financial market forecasting, portfolio optimization, and automated trading. This survey provides a systematic analysis of these developments across three primary dimensions: predictive models that capture complex market dynamics, decision-making frameworks that optimize trading and investment strategies, and knowledge augmentation systems that leverage unstructured financial information. We examine significant innovations including foundation models for financial time series, graph-based architectures for market relationship modeling, and hierarchical frameworks for portfolio optimization. Analysis reveals crucial trade-offs between model sophistication and practical constraints, particularly in high-frequency trading applications. We identify critical gaps and open challenges between theoretical advances and industrial implementation, outlining open challenges and opportunities for improving both model performance and practical applicability.
format Preprint
id arxiv_https___arxiv_org_abs_2411_12747
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle A Survey of Financial AI: Architectures, Advances and Open Challenges
Liu, Junhua
Trading and Market Microstructure
Artificial Intelligence
Computational Engineering, Finance, and Science
Machine Learning
Financial AI empowers sophisticated approaches to financial market forecasting, portfolio optimization, and automated trading. This survey provides a systematic analysis of these developments across three primary dimensions: predictive models that capture complex market dynamics, decision-making frameworks that optimize trading and investment strategies, and knowledge augmentation systems that leverage unstructured financial information. We examine significant innovations including foundation models for financial time series, graph-based architectures for market relationship modeling, and hierarchical frameworks for portfolio optimization. Analysis reveals crucial trade-offs between model sophistication and practical constraints, particularly in high-frequency trading applications. We identify critical gaps and open challenges between theoretical advances and industrial implementation, outlining open challenges and opportunities for improving both model performance and practical applicability.
title A Survey of Financial AI: Architectures, Advances and Open Challenges
topic Trading and Market Microstructure
Artificial Intelligence
Computational Engineering, Finance, and Science
Machine Learning
url https://arxiv.org/abs/2411.12747