The combination of Multi-factor Models and Artificial Intelligence / Machines

Abstract

With a focus on the rationality, risk, and return components of investment strategies, this study proposes to provide light on the growing importance of combining multifactor models and artificial intelligence (AI) in financial decisions intelligent decision making. The research aims to bring together traditional finance theories and modern data-driven approaches to enhance investment decision-making, risk management, and portfolio optimization. In this research I will mainly use this experimental scheme of data exploration as well as other experimental scheme such as using model training and testing to evaluate the possibility of AI-driven models to provide practical solutions and valuable knowledge for the financial industry.