Artificial Intelligence and Financial Behaviour

Edited by Riccardo Viale, Department of Economics, University of Milano-Bicocca; School of European Public Economics, LUISS, Rome, the late Shabnam Mousavi, formerly Center for Artificial Intelligence (CENTAI), Turin, Umberto Filotto, University of Rome “Tor Vergata” and Barbara Alemanni, University of Genoa, Italy

Contents:

Preface viii
Introduction: Artificial intelligence should meet natural
stupidity. But it cannot! 1
Riccardo Viale

PART I AI AND BOUNDED RATIONALITY
1 Financial service providers, AI, satisficing, and the human
touch in the market for financial nudges and boosts 30
Hersh Shefrin
2 The importance of structural rationality: understanding
market institutions 51
Shyam Sunder
3 Bits of individual knowledge in bytes of machines 69
Shabnam Mousav and Mario Rasetti
4 Radical rationality allows coping with fundamental
uncertainty on financial markets 89
Paolo Sironi
5 Integrating heuristics and learning in a computational
architecture for cognitive trading 111
Remo Pareschi and Federico Zappone

PART II AI AND MARKETS
6 Artificial intelligence and conduct in wholesale markets 137
Mark Yallop
7 Using AI to assess credit risk; developing a model 144
Umberto Filotto, Tommaso Giordani, Gian Paolo Stella
and Filmon Teclai
8 Do we like robot? Consumers’ attitude towards the algorithm 156
Barbara Alemanni
9 Financial consumers, digital interfaces and decision aids 174
Peter D. Lunn
10 FOMO and Covid and Cryptos, oh my! 192
Steven Jon Kaplan
11 How AI is re-shaping the financial industry: lights, shades
and perspectives 205
Paola Papanicolaou

12 54,000 PRIIPs KIDs – how to read them (all) 215
Adrien Amzallag
13 Machine learning and artificial intelligence for risk management 240
Edoardo Faletti

Index