Generative Artificial Intelligence in Finance

4Generative Artificial Intelligence (GAI) for Accurate Financial Forecasting

Tajinder Kumar¹, Sachin Lalar^2*, Vishal Garg¹, Pooja Sharma³ and Ravi Dutt Mishra¹

¹CSE Department, JMIETI, Radaur, Haryana, India

²Department of Computer Science and Engineering, Gurugram University, Gurugram, India

³IT Department, JMIT, Radaur, Haryana, India

Abstract

Prudent financial management relies heavily on accurate financial forecasting, which helps companies reduce risks, allocate resources wisely, and make well-informed decisions. In the dynamic world of finance, incorporating generative artificial intelligence (GAI) into financial forecasting has become a game-changer, potentially improving forecast accuracy and dependability. This study examines the use of GAI in economic forecasting, emphasizing how revolutionary it can be in improving predictive accuracy. To create a dynamic and adaptive forecasting framework, GAI combines the capabilities of generative models and artificial intelligence with a large dataset, historical financial data, market trends, and macroeconomic indicators. This paper explores the working mechanisms of GAI, highlighting its capacity to produce synthetic data, model a wide range of scenarios, and identify complex patterns and relationships in financial data. GAI differs from conventional forecasting techniques due to its ability to learn unsupervised and its flexibility in dealing with chaotic and non-linear market conditions. Several case studies and real-world ...