Impact of Artificial Intelligence on Stock Market

Author(s)	Mr. Vadiraja
Country	India
Abstract	Artificial Intelligence (AI) has become a transformative force in global stock markets, fundamentally altering trading mechanisms, market efficiency, liquidity, volatility, and investment performance. This study investigates the impact of AI on stock market operations using empirical evidence from developed and emerging financial markets. Drawing on peer- reviewed academic literature, exchange data, and financial reports, the research finds that AI- driven technologies such as algorithmic trading, machine learning forecasting, and sentiment analysis enhance price discovery, reduce transaction costs, and improve liquidity. However, the findings also reveal mixed effects on volatility and raise concerns about systemic risk and regulatory oversight. The study concludes that while AI contributes positively to stock market performance, its growing influence necessitates robust governance frameworks to ensure market stability.
Keywords	Artificial Intelligence; Stock Market; Algorithmic Trading; Market Efficiency; Liquidity; Volatility; Investment Performance.
Field	Business Administration
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-02-04
DOI	https://doi.org/10.36948/ijfmr.2026.v08i01.67945
Short DOI	https://doi.org/hbnp25

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