Networks and Artificial Intelligence in Finance

This chapter explores the dynamic intersection of network science and artificial intelligence in modern finance. We trace the evolution of venture capital networks from Silicon Valley’s inception to recent phenomena like the PayPal Mafia, revealing patterns of innovation and influence. The study then examines AI’s transformative impact on mergers and acquisitions, highlighting enhanced efficiency in due diligence and decision-making. Our analysis of institutional investors’ networks in the Italian initial public offers uncovers intriguing patterns of capital concentration. The research extends to novel applications of natural language processing in stock market analysis, leveraging unconventional data sources such as Google Trends and YouTube content. Through an interdisciplinary lens, we demonstrate how the integration of network science and AI is not only enhancing analytical capabilities but also reshaping the very nature of financial markets. This exploration offers fresh perspectives on market behavior and investment strategies, contributing to both theoretical understanding and practical applications in finance. The findings challenge conventional wisdom and open new avenues for research in this rapidly evolving field.