Applications focused on market operations cover various core areas eg trading, portfolio composition, backtesting and validation of models, market impact analysis, modelling trading of large positions and stress testing. Dynamic portfolio adjustment, depending on the macro environment, may be strengthened by AI. With the help of AI, various human shortcomings in dealing with finance can be mitigated.
As behavioural finance has taught us, biases, inertia and ignorance lead to the malfunctioning of markets. AI allows humans to reach out beyond their intellectual limits or simply avoid mistakes. 1/4  BIS central bankers' speeches  2 … but beware of the risks But opportunities are always accompanied by risks.