Foundations of Artificial Intelligence Finance

In recent years, the finance industry has undergone a significant transformation thanks to the advent of artificial intelligence. From asset pricing and portfolio asset allocation to derivatives and sustainable finance, AI is making its presence felt in a variety of ways. By providing new and innovative solutions, AI is helping finance professionals to better understand complex financial data and make more informed decisions. This book explores how AI is modernizing finance and offers a comprehensive overview of how this technology is shaping the future of the industry. With its ability to analyze large amounts of data quickly and accurately, AI is providing finance professionals with new tools and insights that can help them make better decisions. Whether it’s identifying investment opportunities or managing risk, AI is playing an increasingly important role in the finance world.

Table of Contents

Preface: AI, the Next Chapter in Finance

Chapter 1: Asset Pricing

Chapter 2: Portfolio Choice and Asset Allocation

Chapter 3: Efficient Markets

Chapter 4: Derivatives

Chapter 5: Fixed Income

Chapter 6: Market Microstructure

Chapter 7: Robo-Advising

Chapter 8: Financial Risk Management

Chapter 9: Sustainable Investing

Chapter 10: Sentiment Analysis

Chapter 11: Financial Analysis

Chapter 12: Alternative Data

Chapter 13: Generative AI

Chapter 14: Risk and Regulation of AI in Finance


Appendix A: Reinforcement Learning Models

A Lecture on AI and Sustainable Investing

Large Language Models for Scientific Research