Artificial Intelligence (AI) Uses in Stock Market

Abstract

In this study, the use of AI in stock market forecasting has been analyzed, with special emphasis on the NEPSE. Stock market forecasting continues to be tough because of nonlinearity and volatility; however, AI methods like machine learning and deep learning have proven very promising in improving the accuracy of stock market forecasts. Literature reviews show the potential of AI methods such as LSTM, GRU, CNN, and Graph Neural Network in predicting stock prices. Although the development of AI in developed countries has revolutionized trading, portfolio management, and risk analysis, its implementation in Nepal is still at a very initial stage and has been only used for academic comparison rather than for actual trading purposes. The necessity of implementing AI in decision-making processes has been emphasized here.