Emerging Market AI Financial Forecasting Models: The Game Mechanism Between Behavioral Biases and Algorithmic Transparency
Zhou Bin    Wan Ziqi    Xu Haiyu

Chengdu Vocational University of Art，Chengdu，610000；

Abstract：The rapid adoption of AI in financial forecasting has revolutionized decision-making in emerging markets. However, this transformation is accompanied by critical challenges, particularly the interplay between behavioral biases inherent in AI models and the demand for algorithmic transparency. This paper explores how biases in data, model design, and human-AI interactions distort predictions, while transparency gaps hinder accountability and trust. Through case studies and theoretical analysis, we propose a governance framework to balance these competing priorities, emphasizing adaptive regulation, hybrid human-AI systems, and ethical AI design.

Keywords: AI financial forecasting; behavioral bias; algorithmic transparency; emerging markets; ethical AI

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