An image-based diffusion with inpainting generates limit order book futures and achieves state-of-the-art distributional similarity on GOOG within LOB-Bench.
Explaining AI in Finance: Past, Present, Prospects
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abstract
This paper explores the journey of AI in finance, with a particular focus on the crucial role and potential of Explainable AI (XAI). We trace AI's evolution from early statistical methods to sophisticated machine learning, highlighting XAI's role in popular financial applications. The paper underscores the superior interpretability of methods like Shapley values compared to traditional linear regression in complex financial scenarios. It emphasizes the necessity of further XAI research, given forthcoming EU regulations. The paper demonstrates, through simulations, that XAI enhances trust in AI systems, fostering more responsible decision-making within finance.
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Painting the market: generative diffusion models for financial limit order book simulation and forecasting
An image-based diffusion with inpainting generates limit order book futures and achieves state-of-the-art distributional similarity on GOOG within LOB-Bench.