We are pleased to announce the publication of a new Working Paper by Dr Donghyun Park, Director of MMPM and co-authors Yang ZHANG, Ziang QIU, and Shu TIAN:
(WP2/2026) Role of Artificial Intelligence in Finance: Selective Literature Review and Implications for Asia’s Financial Stability
This paper provides a comprehensive systematic review of the transformative impact of Artificial Intelligence (AI) on the global financial landscape. By synthesising 249 peer-reviewed studies published between 1990 and 2025, the research categorises AI’s contributions into three primary domains: asset pricing and portfolio management; financial markets and institutions; and corporate finance and governance. Furthermore, the review offers a specialised assessment of AI’s implications for financial stability within Asia. The findings reveal that while AI acts as a “stabilising intelligence” by enhancing efficiency, predictive precision, and financial inclusion, it simultaneously introduces “adaptive fragility” by concentrating market power, embedding algorithmic biases, and intensifying systemic linkages.
Click to read the full paper.
