AN ANALYSIS OF LEGAL OBSTACLES AND INSTITUTIONAL RESPONSES TO THE REGULATION OF AI IN FINANCIAL MARKETS

  • Unique Paper ID: 189277
  • Volume: 12
  • Issue: 7
  • PageNo: 5566-5570
  • Abstract:
  • The rapid application of Artificial Intelligence in the financial market has resulted in a shift in trading, risk management, and decision-making processes. However, such a shift has also presented the market with significant challenges and regulatory concerns. Issues like the transparency of AI algorithms, the use of AI for a positive cause, avoiding market manipulation, and the adherence to financial laws have become significant concerns for regulatory authorities and financial organizations. This paper examines the shifting regulatory framework regarding AI in the financial market, reviewing international laws, the handling of said laws, and the challenges in ensuring their enforcement. It also discusses the role of financial regulatory authorities in ensuring a stable market, the security of investors, and the correct use of AI. This paper emphasizes the significance of a balanced approach to financial laws to avoid major risks while promoting innovation.

Copyright & License

Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{189277,
        author = {Dr. D. Niranjani},
        title = {AN ANALYSIS OF LEGAL OBSTACLES AND INSTITUTIONAL RESPONSES TO THE REGULATION OF AI IN FINANCIAL MARKETS},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {7},
        pages = {5566-5570},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=189277},
        abstract = {The rapid application of Artificial Intelligence in the financial market has resulted in a shift in trading, risk management, and decision-making processes. However, such a shift has also presented the market with significant challenges and regulatory concerns. Issues like the transparency of AI algorithms, the use of AI for a positive cause, avoiding market manipulation, and the adherence to financial laws have become significant concerns for regulatory authorities and financial organizations. This paper examines the shifting regulatory framework regarding AI in the financial market, reviewing international laws, the handling of said laws, and the challenges in ensuring their enforcement. It also discusses the role of financial regulatory authorities in ensuring a stable market, the security of investors, and the correct use of AI. This paper emphasizes the significance of a balanced approach to financial laws to avoid major risks while promoting innovation.},
        keywords = {AI Regulation, Algorithmic Transparency, Institutional Governance, Financial Market},
        month = {December},
        }

Cite This Article

Niranjani, D. D. (2025). AN ANALYSIS OF LEGAL OBSTACLES AND INSTITUTIONAL RESPONSES TO THE REGULATION OF AI IN FINANCIAL MARKETS. International Journal of Innovative Research in Technology (IJIRT), 12(7), 5566–5570.

Related Articles