AI: The ghost in the stock market machines

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AI: The ghost in the stock market machines

The increasing reliance on AI in India's capital markets has raised concerns about potential misuse, particularly through deepfake technology. Instances of impersonation, such as fake stock recommendations from notable figures, have emerged, misleading investors and leading to significant financial losses. Regulatory measures are being called for to address these risks and protect investors from fraudulent activities.

The article highlights the dual nature of AI in finance, where it can enhance accessibility and reduce costs but also facilitate deception and fraud. Cyber investment scams have exploited AI tools, leading to substantial financial losses for individuals. Experts emphasize the need for regulations, such as watermarking AI-generated content, to mitigate these risks while acknowledging AI's transformative potential in the broking industry.

• AI misuse in stock markets raises significant regulatory concerns.

• Deepfake technology has been used to mislead investors in India.

Key AI Terms Mentioned in this Article

Deepfake

Deepfakes have been used to create misleading stock recommendations, impacting investor decisions.

High-Frequency Trading (HFT)

HFT can exacerbate market volatility by reacting to market data faster than human traders.

Algorithmic Trading

This method is increasingly popular in India, influencing market dynamics significantly.

Companies Mentioned in this Article

NSE

The NSE has been at the center of discussions regarding AI's impact on stock trading and investor protection.

ICICI Prudential

The company has been involved in discussions about the implications of AI and deepfake technology in the financial sector.

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