This research looks at how Artificial Intelligence (AI) and Machine Learning (ML) are changing the way stock trading works by analyzing huge amounts of data to make faster and better decisions. It explores how these technologies combine different types of information, like market trends, social media, and economic data, to understand what drives stock prices. The study also highlights the rise of high-frequency trading (HFT) and calls for stronger regulations to manage risks and prevent misuse of these tools.

• Algorithms are more cost-effective for low-maintenance trades, adoption of the algorithmic trade is increasing day by day. Global AI/Ml based trading market size is valued at $18.2 billion in 2023 and is expected to nearly triple by 2033, reflecting strong industry interest in automating trade to maximize returns., Market.us. (Global AI in Trading, 2024, n.p.)

• The benefits of AI automation are notable. Ardakani & Saenz (2023) reported that "AI-automated trading resulted in a 30% reduction in execution time for large firms, accompanied by increased trading volumes and efficiencies. Despite these advancements, challenges such as adapting to volatile markets and the need for advanced infrastructure remain significant. Smaller firms, in particular, may struggle to compete due to the high costs associated with adopting cutting-edge technology."