An Introduction to AI, Generative AI, and Agentic AI in Finance: Efficiency, Ethics, and the Future of High-Speed Trading

<p>The integration of Generative AI and Agentic AI is reshaping finance, offering unprecedented efficiency in decision-making, risk management, and customer engagement. This paper explores how these technologies address inefficiencies in financial markets—from high-frequency trading to credit risk assessment—while introducing ethical, regulatory, and operational challenges. We synthesize recent research to highlight key themes: financial decision-making, ESG analytics, fraud detection, and market efficiency, emphasizing how Generative AI enhances predictive capabilities but also raises concerns about bias, transparency, and exclusion risks. Agentic AI, with its autonomous reasoning, further amplifies these dynamics, necessitating robust governance frameworks. Drawing on empirical studies and case analyses, we outline future research priorities, stressing the need for interpretability, inclusive deployment, and adaptive regulation. Essential for researchers, policymakers, and practitioners aiming to leverage AI’s potential while mitigating its risks in finance.</p>