Emotions and Artificial Intelligence in Finance: Exploring the Relationship

Year : 2025 | Volume : 15 | Special Issue 01 | Page : 11 17
    By

    Malkeet Singh,

  • Jasdeep Kaur Dhami,

  • Nittan Arora,

  • Kartik,

  • Anuj Sharma,

  1. Research Scholar, Department of Bussiness Management, CT Institute of Engineering, Management & Technology, Ludhiana, Punjab, India
  2. Director cum Dean Academics, Department of Bussiness Management, CT Institute of Engineering, Management & Technology, Shahpur, Jalandhar, Punjab, India
  3. Principal, Department of Bussiness Management, CT Institute of Engineering, Management & Technology, Shahpur, Jalandhar, Punjab, India
  4. Assistant Professor, Department of Bussiness Management, CT Institute of Engineering, Management & Technology, Shahpur Jalandhar, Punjab, India
  5. Assistant Professor, Department of Bussiness Management, CT Institute of Engineering, Management & Technology, Shahpur Jalandhar, Punjab, India

Abstract

The integration of Artificial Intelligence (AI) into financial systems has profoundly transformed the industry, providing unprecedented efficiency, accuracy, and speed in decision-making processes. These technological advancements have streamlined operations, reduced human errors, and enabled more informed decision-making based on vast datasets analyzed in real-time. However, the role of emotions in finance remains a critical factor that cannot be ignored. Human emotions, such as fear, greed, and optimism, frequently drive market behavior and individual financial decisions, influencing outcomes in ways that are sometimes unpredictable and difficult to model. This paper delves into the intricate relationship between emotions and AI in finance, highlighting the dual forces at play. On one hand, AI systems excel at objective analysis and logical problem-solving, often compensating for human biases and emotional pitfalls. On the other hand, emerging AI technologies are being developed to understand, interpret, and even respond to human emotions, incorporating affective computing and emotional intelligence into their frameworks. These capabilities have the potential to create a more nuanced interaction between humans and AI, especially in areas such as customer service, behavioral finance, and algorithmic trading. The paper further examines the broader implications of integrating emotional intelligence into AI systems within financial markets and institutions. While this evolution could lead to more adaptive and empathetic AI tools, it also raises concerns about ethics, data privacy, and the potential for manipulation. As AI continues to advance, its ability to simulate or react to human emotions may redefine traditional financial practices, creating both opportunities and challenges. By exploring these dynamics, this research aims to provide valuable insights into the future trajectory of AI in finance and its impact on the emotional landscape of the industry.

Keywords: Artificial intelligence (AI), financial systems, emotions, financial markets, integration

[This article belongs to Special Issue under section in OmniScience: A Multi-disciplinary Journal (osmj)]

How to cite this article:
Malkeet Singh, Jasdeep Kaur Dhami, Nittan Arora, Kartik, Anuj Sharma. Emotions and Artificial Intelligence in Finance: Exploring the Relationship. OmniScience: A Multi-disciplinary Journal. 2025; 15(01):11-17.
How to cite this URL:
Malkeet Singh, Jasdeep Kaur Dhami, Nittan Arora, Kartik, Anuj Sharma. Emotions and Artificial Intelligence in Finance: Exploring the Relationship. OmniScience: A Multi-disciplinary Journal. 2025; 15(01):11-17. Available from: https://journals.stmjournals.com/osmj/article=2025/view=195200


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Special Issue Subscription Review Article
Volume 15
Special Issue 01
Received 14/10/2024
Accepted 20/11/2024
Published 23/01/2025
Publication Time 101 Days
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