This paper explores the systemic risks posed by the integration of artificial intelligence (AI) in social trading, emphasizing the urgent need for next-generation regulatory frameworks. While AI enhances decision-making speed, market efficiency, and accessibility, it also introduces challenges such as algorithmic opacity, market manipulation, and amplified systemic vulnerabilities. The study highlights the dual-edged nature of AI-driven social trading platforms and calls for comprehensive, adaptive regulation that balances innovation with financial stability and consumer protection in an increasingly interconnected financial ecosystem.
References
[1]
Araujo, D., Doerr, S., Gambacorta, L., & Tissot, B. (2024). Artificial Intelligence in Central Banking.BISBulletinNo.84. https://www.bis.org/publ/bisbull84.pdf
[2]
Bahoo, S., Cucculelli, M., Goga, X., & Mondolo, J. (2024). Artificial Intelligence in Finance: A Comprehensive Review through Bibliometric and Content Analysis. SNBusiness&Economics,4, Article No. 23. https://doi.org/10.1007/s43546-023-00618-x
[3]
Camilleri, M. A. (2023). Artificial Intelligence Governance: Ethical Considerations and Implications for Social Responsibility. ExpertSystems,41, e13406. https://doi.org/10.1111/exsy.13406
[4]
Cohen, G. (2022). Algorithmic Trading and Financial Forecasting Using Advanced Artificial Intelligence Methodologies. Mathematics,10, Article No. 3302. https://doi.org/10.3390/math10183302
[5]
Ekundayo, F. (2024). Economic Implications of AI-Driven Financial Markets: Challenges and Opportunities in Big Data Integration. InternationalJournalofScienceandResearchArchive,13, 1500-1515. https://doi.org/10.30574/ijsra.2024.13.2.2311
[6]
El Hajj, M., & Hammoud, J. (2023). Unveiling the Influence of Artificial Intelligence and Machine Learning on Financial Markets: A Comprehensive Analysis of AI Applications in Trading, Risk Management, and Financial Operations. JournalofRiskandFinancialManagement,16, Article No. 434. https://doi.org/10.3390/jrfm16100434
[7]
Feng, S. (2024). Integrating Artificial Intelligence in Financial Services: Enhancements, Applications, and Future Directions. AppliedandComputationalEngineering,69, 19-24. https://doi.org/10.54254/2755-2721/69/20241455
Hakimi, M., Sazish, B., Rastagari, M. A., & Shahidzay, K. (2024). Artificial Intelligence for Social Media Safety and Security: A Systematic Literature Review. StudiesinMedia,JournalismandCommunications,1, 10-21. https://doi.org/10.32996/smjc.2023.1.1.2x
[10]
Mandych, O., Staverska, T., & Maliy, O. (2023). Integration of Artificial Intelligence into the Blockchain and Cryptocurrency Market. ModelingtheDevelopmentoftheEconomicSystems,No. 4, 61-66. https://doi.org/10.31891/mdes/2023-10-8
[11]
Maple, C., Szpruch, L., Epiphaniou, G., Staykova, K. S., Singh, S., Penwarden, W., Wen, Y., Wang, Z., Hariharan, J., & Avramović, P. (2023). TheAIRevolution:OpportunitiesandChallengesfortheFinanceSector. Cornell University.
[12]
Park, S. (2023). BridgingtheGlobalDivideinAIRegulation:AProposalforaContextual,Coherent,andCommensurableFramework. Cornell University.
[13]
Sushkova, O. V., & Minbaleev, A. V. (2021). Legal Regulation of Artificial Intelligence in the Financial Services Market: A Comparative Analysis. SHSWebofConferences,118, Article No. 04007. https://doi.org/10.1051/shsconf/202111804007
[14]
Torres, A., Wenke, M., Lieneck, C., Ramamonjiarivelo, Z., & Ari, A. (2024). A Systematic Review of Artificial Intelligence Used to Predict Loneliness, Social Isolation, and Drug Use during the COVID-19 Pandemic. JournalofMultidisciplinaryHealthcare,17, 3403-3425. https://doi.org/10.2147/jmdh.s466099
[15]
Wijaya, T., & Nidhal, M. (2023). InternationalExperienceswithInnovativeCreditScoring:LessonsforIndonesia.CenterforIndonesianPolicyStudies. Discussion Paper No. 14.