1. Artificial intelligence and the digitalization of finance in Latin America: evidence from Brazil.
- Author
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Paraná, Edemilson
- Subjects
- *
DIGITAL electronics , *CAPITAL market , *MACHINE learning , *ARTIFICIAL intelligence , *FINANCIAL risk - Abstract
For decades, the data-centric digital circuits of global finance have been driving financial markets toward algorithmic management. The penetration of algorithms into finance dates back to the 1980s, well before becoming a significant trend in Internet and social media companies. AI is now considered the new frontier of this process. This paper examines Brazil, the most important financial center in Latin America, as a case study to explore Machine Learning applications in capital markets, providing new evidence on the penetration of automated trading systems in the region. Grounded in a historical overview of the digitalization of capital markets in Brazil, the paper draws on the STS definition of infrastructures and the political economy of digitalized finance to analyze AI as an emerging financial infrastructure. Beyond its physical and material aspects, this approach also addresses how digitalization and AI relate to financialization and the emergence of new financial risks. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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