TeaThe world of capital markets is on the verge of a radical change. While technologies such as blockchain, IoT and cloud computing have all this capital market disrupted In the past, the potential change generative artificial intelligence (AI) represents is even greater. AI expert and entrepreneur Ahmad Raza is one of the leaders who believes that AI is going to be usher in a new era efficiency, accountability and stability for capital markets.
“Although much progress has been made in the past two decades, the best is yet to come,” says Reza. “The rapidly growing potential of AI is set to revolutionize the way we invest, trade and navigate the complexities of capital markets, truly bringing them into the 21st century.”
Self-described as an “AI geek”, Ahmed Raza is a Cornell graduate and serial entrepreneur which has quickly become one of the most famous tech speakerAI campaigner, and community builders in Florida. as the founder and CEO of YobIA startup using AI to grow synthetic agentReza has been at the forefront of exploring the transformative potential of AI across various industries.
Raza, who has went deeper Compared to most of his colleagues in the AI realm, he believes there are 5 areas in which capital markets and investors will benefit most from AI: due diligence, transparency, accessibility, risk management, and regulatory compliance. Here’s what Reza had to say about each of these:
Due Diligence: Unveiling Hidden Insights
“AI is extremely powerful when it comes to analyzing data to find patterns, anomalies, and make data-based predictions, doing so with an efficiency and accuracy that no human can match. This makes AI uniquely suited to discover hidden insights that were once elusive, creating unique opportunities by giving investors a deeper understanding to make informed decisions.
Transparency: Making capital markets crystal clear
“One of the biggest challenges facing traditional capital markets is the growing lack of transparency, which the SEC also Referred to, AI can help operators, regulators and analysts identify signs of manipulation or fraud in real time, ensuring markets operate fairly. This can be taken a step further by having AI act upon such signals, with machine learning ensuring that the accuracy of the system increases over time.
Accessibility: Democratizing the Capital Market
“AI could be the great equalizer we have been waiting for, breaking down technological barriers and democratizing capital markets. I have already mentioned how AI facilitates diligence, which plays a role here. However, generative AI also means that users can receive information in an easy-to-understand way that accommodates their expertise, interests, and special needs. AI can basically become a financial advisor that speaks all languages. everyone can afford, and whose decision-making is based entirely on facts.”
Risk Management: Protecting Investors
“The latest advances in AI mean that these models can now have immediate access to information via the internet, allowing them to stay up to date with recent developments. This is a game changer in terms of risk management, Because it means AI can monitor factors such as public sentiment and real-time events to inform investors or take action when risk becomes unacceptable, protecting them from unexpected losses.
Regulatory Compliance: Navigating the Rulebook
“Capital markets are subject to intense scrutiny by regulators, especially in times of rapid innovation. As industries such as crypto, blockchain and fintech become increasingly relevant, regulations are constantly being adapted, creating challenges for market operators and investors. AI can be the guiding compass that ensures adherence to this ever-evolving rulebook in an efficient, accurate, cost-effective and secure manner.
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The views and opinions expressed here are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
