LSTMs in Finance: Navigating Innovation and Collaboration

This chapter explores the application of Long Short-Term Memory (LSTM) models in the financial sector, emphasizing their advantages over transformers in terms of explainability and regulatory compliance. The discussion addresses the challenges of adopting novel AI technologies in trading environments and advocates for collaboration and simplicity in solutions to facilitate smoother integration. Additionally, it highlights the importance of understanding causality and the potential of Agenic AI, showcasing how multiple AI agents can work together for enhanced outcomes.