The capital markets are a natural environment for artificial intelligence (AI)-based models. Investment managers have an enormous amount of data and only need to optimize one single output factor which is the adjusted risk or expected return for a financial asset.

This chapter analyzes the role of AI in the decision-making processes of financial intermediaries and gives readers an historical overview of the development.

This chapter also explains how the technology can be used to help underserved segments of the population receive access to funding. There are already impact-related fintechs which are working in the field. This chapter also looks at ESG data companies which are using AI to provide additional signals for investors.