Abstract
Who should be held responsible when artificial intelligence (AI) performs market manipulation? In this study, I constructed an AI trader using a genetic algorithm that learns in an artificial market simulation. Then I investigated whether the AI trader discovers market manipulation through learning even though the AI developer had no intention of manipulating the market. Results showed that the AI trader discovered market manipulation as an optimal investment strategy. This suggests that regulation is necessary, such as requiring developers to prevent AIs from performing market manipulation. The results also suggest that developers should limit AI traders to avoid impacting market prices.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
