TITLE:
AI in Social Trading: Systemic Risks Calling for Next-Generation Regulation
AUTHORS:
Marcello Forcellini, Gianfranco Antonio Vento, Eva Gracikova
KEYWORDS:
Artificial Intelligence, Social Trading, Systemic Risk, Algorithmic Transparency, Financial Regulation
JOURNAL NAME:
Technology and Investment,
Vol.17 No.1,
December
17,
2025
ABSTRACT: This paper explores the systemic risks posed by the integration of artificial intelligence (AI) in social trading, emphasizing the urgent need for next-generation regulatory frameworks. While AI enhances decision-making speed, market efficiency, and accessibility, it also introduces challenges such as algorithmic opacity, market manipulation, and amplified systemic vulnerabilities. The study highlights the dual-edged nature of AI-driven social trading platforms and calls for comprehensive, adaptive regulation that balances innovation with financial stability and consumer protection in an increasingly interconnected financial ecosystem.