Volume 5 Number 1 2024
The Role of AI and IT in Transforming Stock Price Analysis and Decision-Making Frameworks
Sonia Khan Papia1*, Fahim Rahman2, Sonia Nashid3, Al Akhir4, Anik Biswas5, Ariful Islam4
Journal of Primeasia 5 (1) 1-8 https://doi.org/10.25163/primeasia.5110376
Submitted: 08 January 2024 Revised: 14 October 2024 Published: 16 October 2024
Abstract
Background: The methods of analyzing stock prices have typically relied on fundamental and technical methods, but the impact of Artificial Intelligence (AI) and Information Technology (IT) is reshaping the financial decision-making space. Investors are shifting toward AI-driven models and IT-enabled platforms due to the demand for ever-increasing predictive accuracy, real-time insight, and risk management.
Methods: A survey to examine the adopted and applied use of AI and IT for stock market analysis was developed and administered to 100 respondents including retail investors, financial analysts and developers of IT. Respondents received a structured questionnaire, and the data were analyzed with descriptive statistics.
Results: In respondents 72% indicated they use machine learning to predict stock prices, 65% of respondents use IT-enabled dashboards on the market, and 58% use predictive analytics. Close to 49% of respondents use natural language processing (NLP) to analyze sentiment, and 32% of respondents use block chains for its transparency. The main challenges that were reported were costs of implementation (41%), lack of technical implementation capability (38%), and data privacy concerns (29%).
Conclusion: AI and IT are obviously changing stock price analytics by improving predictive reliability, transparency, and informed decision making. Although challenging, the survey results provide definitive evidence that systematic change is taking place away from traditional decision making and toward technology enabled investment frameworks. There is likely to be a time in the near future, when AI (ML, NLP) will converge with IT (cloud computing, block chains, dashboards) in the financial markets.
Keywords: Artificial Intelligence, Information Technology, Stock Price Analysis, Decision-Making Frameworks, Predictive Analytics
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