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Artificial intelligence and machine learning in finance: Identifying foundations, themes, and research clusters from bibliometric analysis

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  • Goodell, John W.
  • Kumar, Satish
  • Lim, Weng Marc
  • Pattnaik, Debidutta

Abstract

Artificial intelligence (AI) and machine learning (ML) are two related technologies that are emergent in financial scholarship. However, no review, to date, has offered a wholistic retrospection of this research. To address this gap, we provide an overview of AI and ML research in finance. Using both co-citation and bibliometric-coupling analyses, we infer the thematic structure of AI and ML research in finance for 1986–April 2021. By uncovering nine (co-citation) and eight (bibliometric coupling) specific clusters of finance that apply AI and ML, we further identify three overarching groups of finance scholarship that are roughly equivalent for both forms of analysis: (1) portfolio construction, valuation, and investor behavior; (2) financial fraud and distress; and (3) sentiment inference, forecasting, and planning. Additionally, using co-occurrence and confluence analyses, we highlight trends and research directions regarding AI and ML in finance research. Our results provide assessment of AI and ML in finance research.

Suggested Citation

  • Goodell, John W. & Kumar, Satish & Lim, Weng Marc & Pattnaik, Debidutta, 2021. "Artificial intelligence and machine learning in finance: Identifying foundations, themes, and research clusters from bibliometric analysis," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).
    • Handle: RePEc:eee:beexfi:v:32:y:2021:i:c:s2214635021001210
    DOI: 10.1016/j.jbef.2021.100577
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    Keywords

    Artificial intelligence; Bibliometric analysis; Finance; Machine learning; Review;
    All these keywords.

    JEL classification:

    • B16 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Quantitative and Mathematical
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

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