Smart Investing: Leveraging AI for Risk-Aware Financial Approach

Abstract

Financial markets are known as one of the most complex and fascinating sectors of the world economy. Billions of dollars are traded daily in these markets and for investors and traders, they are seen as opportunities to earn profits and increase their assets. Today, the applications of artificial intelligence in asset management are not a secret to anyone. The emergence of artificial intelligence technology has opened up new ideas and models for asset management, marketing and sales development, advertising, e-commerce and store services. The current research aims to provide an investment strategy to smooth the progress of the investor company in the financial markets; Therefore, the upcoming research can be considered practical in terms of purpose. Additionally, since the present research uses mathematical models, modeling, artificial intelligence, and evaluates the portfolio optimization of the investor company with the proposed model, it is therefore a quantitative and descriptive type of research. This research evaluated the performance of the proposed model in three cases: cautious, moderate and risk-taking investor companies. The obtained results showed that for all three cases, the presented strategy works significantly better than the market index and other previous strategies. At the end of the investment period, the risk-taking portfolio had a higher value than the other portfolios. On the other hand, the conservative portfolio earned more stable and steady returns. These results revealed that the presented fuzzy planning is able to reflect the characteristics and tendencies of the investor company in the portfolio composition.

Keywords: Artificial Intelligence, Risk, Assets, Financial Markets, Management.