A Study on Artificial Intelligence Regulation in Financial Markets: Organizational Reactions and Legislative Obstacles

R Venkatesa Narasimma Pandian

Assistant Professor, Mannar Thirumalai Naicker College (Autonomous), Madurai, Tamilnadu, India.

Abstract

Artificial Intelligence (AI) has revolutionized trading, risk management, and decision-making within financial markets because of its rapid uptake. But there are now significant financial and regulatory challenges arising from this move. To institutions and politicians, such concerns as market manipulation, transparency of algorithms, ethical application of AI, and compliance with existing financial regulations have become pressing concerns. This research analyzes the evolving legal landscape that oversees AI usage in financial markets, including global regulatory frameworks, training methods, and enforcement problems. It also focuses on the role of financial regulatory bodies in ensuring investor protection, market stability, and ethical use of AI. A balanced regulatory policy that encourages innovation and minimizes systemic risks is required, the report states.

Keywords

• AI Regulation, Algorithmic Transparency, Institutional Governance, Financial Markets.

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Cite this Article as Follows

R, V. N. P. (2025). From theory to impact: New visions across disciplines: FTI July 2025 [Hard Bound]. In D. James (Ed.), From Theory to Impact: New Visions Across Disciplines (1st ed., Vol. 1, pp. 1–9). ASDF International. https://edlib.net/2025/fti1/ftijuly2025014.html