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edX

Generative AI and its Applications in Finance

State Bank of India via edX

Overview

Generative AI (GAI) is a powerful technology that enables computers to create new content—such as text, images, or financial data, by learning from existing patterns. Unlike traditional AI, which analyses and processes data, GAI leverages advanced machine learning models to generate realistic outputs that mimic real-world information. In the financial sector, this technology is revolutionizing fraud detection, risk assessment, market forecasting, and trading strategies, making financial systems more efficient, secure, and intelligent.

This course provides a foundational understanding of Generative AI and its transformative role in the financial industry. It covers key AI models, including Generative Adversarial Networks (GANs), Variational Autoencoders (VAEs), and Autoregressive Models, explaining their applications in financial forecasting, risk management, synthetic data generation, and fraud detection. Additionally, the course explores AI-driven trading strategies, regulatory and ethical considerations, and emerging trends shaping the future of finance.

Through a mix of theoretical insights and practical real-world applications, participants will gain the skills needed to leverage Generative AI for enhancing financial operations, decision-making, and risk.

Syllabus

Section 1 Introduction to Generative AI and Neural Networks

Subsection 1.1 Overview of AI and Generative Models

  • Unit 1.1.1 Definition and Basic Principles
    • Introduction to Generative AI
    • Key Concepts and History of Generative Models
  • Unit 1.1.2 Types of Generative Models
    • GANs, VAEs, and Autoregressive Models
    • Comparative Analysis of Different Generative Models

Section 2 Generative Adversarial Networks (GANs)

Subsection 2.1 Introduction to GANs

  • Unit 2.1.1 Structure and Components of GANs
    • Generator and Discriminator Overview
    • Interactive Drag-and-Drop GAN Components
  • Unit 2.1.2 Training and Challenges
    • Common Issues and Solutions in GAN Training
    • Addressing Mode Collapse and Convergence

Section 3 Variational Autoencoders (VAEs) and Autoregressive Models

Subsection 3.1 Understanding VAEs

  • Unit 3.1.1 Structure and Functions of VAEs
    • Introduction to VAEs
    • Comparing VAEs and GANs

Subsection 3.2 Applications of VAEs in Finance

  • Unit 3.2.1 Anomaly Detection
    • Using VAEs for Fraud Detection
    • Case Study Anomaly Detection in Transactions

Section 4 Applications in Finance

Subsection 4.1 Financial Forecasting and Trading Strategies

  • Unit 4.1.1 Time Series Prediction
    • Time Series Techniques
    • Case Studies on Time Series Prediction in Finance
  • Unit 4.1.2 Enhancing Trading Strategies
    • Predictive Analytics in Trading
    • Examples of AI-Driven Trading Strategies

Subsection 4.2 Synthetic Data in Finance

  • Unit 4.2.1 Addressing Data Scarcity and Privacy
    • Benefits of Synthetic Data
    • Financial Use Cases of Synthetic Data

Section 5 Risk Management and Fraud Detection

Subsection 5.1 Risk Management Applications

  • Unit 5.1.1 Stress Testing and Scenario Analysis
    • AI-Driven Risk Management
    • Case Study Stress Testing in Financial Institutions

Subsection 5.2 Fraud Detection

  • Unit 5.2.1 Anomaly Detection for Fraud Prevention
    • Fraud Detection with AI
    • Techniques for Anomaly Detection

Section 6 Ethical and Regulatory Considerations and Future Trends

Subsection 6.1 Regulatory and Ethical Implications

  • Unit 6.1.1 Compliance with Financial Regulations
    • Regulatory Challenges in AI
    • Ensuring Compliance
  • Unit 6.1.2 Addressing Bias and Fairness
    • Ethics in AI
    • Reducing Bias in AI Models

Subsection 6.2 Future Trends and Innovations

  • Unit 6.2.1 Advances in Generative AI
    • Future of Generative AI in Finance
    • Emerging Trends
  • Unit 6.2.2 Preparing for AI Integration
    • Strategies for AI Adoption in Financial Institutions
    • Preparing for AI Integration

Taught by

Satish Kumar S and Shaji Neelakandan

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