The Role Of Artificial Intelligence (AI) In Stock Market Analysis
- IJLLR Journal
- Nov 6, 2025
- 1 min read
Sivabakkiyavathi R, KMC College of Law
ABSTRACT
This paper explores the transformative role of Artificial Intelligence (AI) in stock market analysis, highlighting its applications, benefits, and challenges. AI technologies such as machine learning, natural language processing (NLP), and neural networks have revolutionized financial markets by enabling real-time data processing, predictive modelling, algorithmic trading, sentiment analysis, and portfolio risk management. The paper reviews key literature, emphasizing AI’s superior performance over traditional methods in forecasting and investment strategy optimization. It also examines the regulatory and ethical implications of AI within the framework of the Indian Companies Act, 2013, focusing on areas like corporate governance, risk disclosure, fraud prevention, and the auditor’s role. Despite concerns around data quality, model overfitting, and market fairness, AI’s future in financial markets is promising, with its integration into blockchain technologies and decentralized finance (DeFi) set to redefine investment strategies. As AI continues to evolve, addressing transparency and regulatory compliance will be critical to ensuring its responsible and equitable deployment in stock market analysis.
