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Managing the Global Financial System on the Basis of Artificial Intelligence: Possibilities and Limitations

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The Future of the Global Financial System: Downfall or Harmony (ISC 2018)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 57))

Abstract

The purpose of the article is to determine the possibilities and limitations of managing the global financial system on the basis of artificial intelligence. For determining the reasons of the recent global financial crisis and for determining the opportunities and limitations of overcoming the crisis with the help of modernization of this system’s management with the help of artificial intelligence, the authors use the method of SWOT analysis. For describing the essence of the process of managing the global financial system on the basis of artificial intelligence, the method of modeling of economic systems and the method of formalization are used. As a result, the authors come to the conclusion that the working hypothesis is correct – artificial intelligence does possess large potential in the sphere of stimulation of anti-crisis development of the global financial system. Allowing overcoming the influence of “human factor” on development of this system, which was one of the main reasons of its recent crisis, artificial intelligence can ensure stable functioning, high effectiveness, and sustainable growth of the global financial system. Despite the wide possibilities for optimization of management of the global financial system on the basis of artificial intellect, including rationalization of decision making, programming of social responsibility of economic subjects, expansion of opportunities in the sphere of analysis and forecasting of long-term consequences of their actions and market events, and elimination of dependence of financial markets on the influence of social tendencies, this process is peculiar for certain limitations. In order to overcome them, the authors offer a conceptual model of managing the global financial system on the basis of artificial intelligence.

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Acknowledgments

The reported study was funded by RFBR according to the research project No. 18-010-00103 A.

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Authors and Affiliations

  1. Institute of Scientific Communications, Volgograd, Russia

    Elena G. Popkova

  2. North Caucasus Federal University, Stavropol, Russia

    Valentina N. Parakhina

Authors
  1. Elena G. Popkova
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  2. Valentina N. Parakhina
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Correspondence to Elena G. Popkova .

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Editors and Affiliations

  1. Institute of Scientific Communications, Volgograd, Russia

    Elena G. Popkova

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Popkova, E.G., Parakhina, V.N. (2019). Managing the Global Financial System on the Basis of Artificial Intelligence: Possibilities and Limitations. In: Popkova, E. (eds) The Future of the Global Financial System: Downfall or Harmony. ISC 2018. Lecture Notes in Networks and Systems, vol 57. Springer, Cham. https://doi.org/10.1007/978-3-030-00102-5_100

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