AI IN FINANCIAL FORECASTING: CURRENT TRENDS AND FUTURE

Abstract

This study looked at how artificial intelligence (AI) is being used in financial forecasting today and what might happen in the future. We studied 300 financial companies from 12 different countries to see how well AI works compared to old methods. The research used both numbers and interviews to get a complete picture. We found that AI methods were much better at predicting financial trends, getting things right 75% of the time compared to only 48% for traditional methods. Machine learning worked especially well for short-term predictions, while deep learning was better for long-term forecasting. However, we also found problems like poor data quality (mentioned by 65% of companies), lack of skilled workers (70% of companies), and difficulty following regulations (55% of companies). The study shows that AI can really help financial companies make better predictions, but they need to solve several problems first. Future developments will likely focus on AI that can explain its decisions, faster processing systems, and better ways to handle regulations.

Keywords: Artificial Intelligence, Financial Forecasting, Machine Learning, Predictive Models, Fintech, Banking Technology, Investment Analysis