AI and Machine Learning in Portfolio Management: A New Era of Predictive Finance

Abstract

The integration of Artificial Intelligence (AI) and Machine Learning (ML) in portfolio management is revolutionizing the financial landscape. This paper explores how these technologies enhance decision-making, risk assessment, and asset allocation in dynamic financial markets. Emphasizing predictive analytics, algorithmic trading, and sentiment analysis, it outlines the transformation from traditional to intelligent investment strategies. Case studies and empirical evidence illustrate the efficiency, adaptability, and challenges of AI/ML in portfolio management, positioning them as pivotal tools for the future of finance.