Why AI in finance and trading needs Aristotle's ethical framework

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Artificial Intelligence (AI) is reshaping the financial industry at an unprecedented pace.

Artificial Intelligence is reshaping the financial industry at an unprecedented pace. From algorithmic trading and portfolio management to risk mitigation and fraud detection, AI’s role is growing across all areas of finance. As these systems become more sophisticated, the ethical implications of their decisions are under increasing scrutiny.

One of the challenges with AI in finance is that many algorithms function as black boxes, making decisions that are difficult for humans to understand or interpret. By incorporating Aristotle’s emphasis on rational clarity, financial institutions can design AI systems that are more transparent and explainable, giving traders, investors, and regulators a clearer understanding of how decisions are made.

 

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