AI-Enhanced Financial Forecasting

Authors

  • Dr. Sébastien Lachapelle Associate Professor of Geomatics Engineering, University of Calgary, Canada Author

Keywords:

AI-Enhanced, Financial

Abstract

There is a critical interface in the scientific field of financial forecasting, encompassing machine learning and artificial intelligence. Who would not be interested in knowing what the next few years might hold in terms of economic development, asset prices, or revenue expectations? Be it trading, investment, or corporate management, stakeholders strongly depend on the accuracy, sensitivity, and specificity of accurate future predictions. Therefore, next-year and multi-year forecasts guide different future decisions; thus, the predictability and extent of predictability are equally important aspects in financial forecasting. Hence, the capabilities of methods and their predictions are relatively comparable. Despite the increasing computing power and fast memory available, this measure has not shown a clear trend towards increased predictability. There is more evidence that the amplitude of the unexpected deviation is relatively unchanged. In fact, the standard deviation indicates that the size of the unexpected deviation has only slightly increased in the last 30 years. There were only two years in that period which showed a higher amplitude than the previous 29 years.

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Published

19-10-2024

How to Cite

[1]
D. S. Lachapelle, “AI-Enhanced Financial Forecasting”, Distrib Learn Broad Appl Sci Res, vol. 10, pp. 439–453, Oct. 2024, Accessed: Dec. 22, 2024. [Online]. Available: https://dlabi.org/index.php/journal/article/view/181

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