The Role of Artificial Intelligence in Stock Forecasting in Indonesian Stock Exchange Firm

Abstract

The financial sector’s growing interest in leveraging artificial intelligence (AI) for forecasting has been noted in recent years. In this chapter, we delve into the application of AI in financial forecasting within Indonesia’s stock market. Our primary focus is to assess how AI’s prediction potential can impact investors and financial regulators in this context. Our review spans existing literature on AI and financial forecasting, recent developments in the Indonesian stock market, and ethical and regulatory concerns that surround AI in finance. Our analysis indicates that AI can enhance forecast accuracy in Indonesia’s stock exchange; however, we must also consider limitations and challenges.

Citation

Annaufal, A.I., Mariyana, A.L.D. and Roostika, R. (2024), "The Role of Artificial Intelligence in Stock Forecasting in Indonesian Stock Exchange Firm", Hamdan, A., Alareeni, B. and Khamis, R. (Ed.) Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application (Studies in Managerial and Financial Accounting, Vol. 36), Emerald Publishing Limited, Leeds, pp. 27-35. https://doi.org/10.1108/S1479-351220240000036003