Abstract
It is time to look back, and forward, into the applications and the research challenges ahead for artificial intelligence in economics and finance. This broad area had in the late 1970’s been labelled as “the one” field where AI would “with certainty and brilliance” make the deepest inroads, owing to the relatively high proportion of simple formalized heuristic knowledge and low labor productivity. Until about 1990 a large number of banks, insurance or finance companies embarked on internal developments, hiring a few key AI specialists for overall software architectural design and prototyping. Some specialist companies also emerged, offering generic approaches using mostly knowledge based or natural language based tools tailored to special needs of these generic areas (like insurance, asset allocation, formatted message understanding). It is estimated that more than 2000 prototypes were developed in industry worldwide, most with standard “shells”, and defined as a commercial effort of more than 6 man. months. For rather strange reasons, “open” AI applications in economics and finance was never a prime area for academic researchers in their academic capacities, and economics/management science by and large never showed any interest at that time.
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Pau, L.F. (1994). Artificial Intelligence in Economics and Finance a State of the Art 1994. In: Barth, G., Günter, A., Neumann, B. (eds) KI-94. Informatik aktuell. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-79283-0_2
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