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The machine-learning approach to financial modeling is an attempt to find financial models automatically, through a process of progressive adaptation. Machine learning is rooted in statistics and artificial intelligence (AI). There are several machine-learning approaches to automatic problem solving that play a role in financial asset management.
Machine learning (and AI techniques in general) is one of the many techniques used in specific applications in financial modeling. AI and its application to financial forecasting generated a lot of exaggerated claims and hype and received a lot of professional and media attention. AI was considered a revolutionary technology that could completely change the way people were doing business in finance.
Today, as noted by one of the pioneers in the application of AI to finance, David Leinweber, those days are over. The hyperbole has made way for a more pragmatic attitude: AI is useful, but not a panacea.