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Technical Seminar CODE - 7CAI7-40 Main Presentation

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66 views9 pages

Technical Seminar CODE - 7CAI7-40 Main Presentation

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aunshg95
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Department of Artificial Intelligence & Data Science

Session 2024-25 ODD

TECHNICAL SEMINAR
CODE - 7CAI7-40
MAIN PRESENTATION
POORNIMA INSTITUTE OF ENGINEERING &
TECHNOLOGY, JAIPUR
DEPARTMENT OF ARTIFICIAL INTELLIGENCE
&
DATA SCIENCE
TECHNICAL SEMINAR PRESENTATION
ON

Ethics and Bias in AI Algorithm


SESSION 2023-24

Presented By: Guided By


Name: Aunsh Gupta Name: Mr. Girdhari Lal
Reg. no: PIET21CA014 Designation: Assistant
Professor
Year: Fourth Year Institute: PIET
Algorithmic Trading using AI

Objective : To ensure AI-driven algorithmic trading systems


are designed, developed, and deployed to promote fairness,
accountability, and transparency while minimizing potential
risks. This involves identifying, understanding, and mitigating
biases in trading algorithms to build trust and stability in
financial markets.

Key Goals : Fairness and Market Integrity Ensure equitable


trading practices and prevent exploitation of unfair
advantages .Transparency Enable interpretability of
algorithmic trading decisions .Accountability Establish clear
governance and responsibility for outcomes . Bias Mitigation
Identify and minimize biases in trading data and strategies .
Privacy and Security Protect sensitive
data and ensure compliance with privacy regulations.
Rationale for Topic Selection
1.Growing Dependence on AI in Trading
AI-driven algorithms are increasingly used in financial markets, automating
critical trading decisions and influencing market dynamics.
These algorithms have a significant impact on market fairness, investor
outcomes, and overall economic stability.

2.Risk of Perpetuating Market Bias


Biases in AI trading systems can lead to unfair market practices, amplifying
existing inequalities and disadvantaging certain participants.
Historical market data used to train these systems often reflects past
inefficiencies or biases, making bias mitigation essential.
3.Trust and Adoption of AI in Finance
For AI in algorithmic trading to be widely accepted, it must demonstrate
4. fairness, transparency, and adherence to ethical standards.
Proactively addressing ethical concerns fosters trust among regulation
investors, and other stakeholders, ensuring smoother adoption and integration.
Methodology Used
Literature Review
Examine research on AI ethics, bias, and their implications in financial markets.
2.Case Studies
Study real-world algorithmic trading systems and their ethical impacts.
3.Algorithm Analysis
Analyze trading datasets and AI models for bias detection.
4.Stakeholder Insights
Conduct interviews with developers, traders, and regulators.
5.Framework Comparison
Compare regulatory guidelines and ethical standards in algorithmic trading.
6.Literature Review
Examine research on AI ethics, bias, and their implications in financial markets.
6.Simulation Testing
Simulate trading scenarios to test bias mitigation techniques.
7.Framework Development
Develop tools and ethical guidelines for evaluating AI-driven trading systems.
Benefits of AI Trading &
Algorithmic Strategies
1.Enhanced Efficiency: Streamlines trading processes
by executing decisions in milliseconds, outperforming
manual trading speeds.
2.Consistent Decision-Making: Eliminates emotional
biases, ensuring rational and systematic trading
strategies across diverse market conditions.
3.Broader Accessibility: Makes advanced financial
tools and strategies available to traders at all levels,
democratizing market participation.
4.Regulatory Adherence: Adapts rapidly to
compliance requirements, minimizing risks associated
with evolving financial regulations.
5.Data-Driven Insights: Leverages vast datasets to
uncover trends and patterns, empowering smarter
investment decisions.
Future Trends and Prospects
•Advancements in Predictive Analytics: Integration of more
sophisticated
machine learning models to predict market trends with higher
accuracy and reliability.
•Explainable AI (XAI) in Trading: Enhanced transparency in
trading algorithms, allowing stakeholders to understand the
rationale behind decisions, boosting trust and adoption.
•Real-Time Risk Management: Implementation of dynamic tools to
assess and manage risks on-the-fly, adapting to rapid market
changes.
•Ethical AI Governance: Adoption of global ethical standards and
regulations, ensuring fair & responsible algorithmic trading practices
across financial markets.
•Decentralized Trading Models: Use of blockchain technology for
secure, transparent, and efficient execution of trades on
decentralized platforms.
Conclusion
AI trading and algorithmic strategies are revolutionizing the financial
landscape, driving efficiency, accuracy, and innovation in market
operations.
By integrating advanced technologies such as machine learning,
explainable AI (XAI), and blockchain, these systems offer
unparalleled opportunities to optimize decision-making and risk
management.
Ethical governance frameworks ensure fairness and regulatory
compliance, fostering trust and sustainability in financial markets. As
these technologies evolve, they promise greater accessibility and
scalability, empowering traders and institutions of all sizes.
AI trading is shaping a future where financial systems are more
transparent, adaptive, and inclusive, paving the way for robust and
equitable market ecosystems.
Thanks!!

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