AI Innovations and Silicon Valley: How Wall Street Is Changing

Abstract

In our age of digital transformation and innovations spreading to every aspect of life, transformative technological innovations originating from Silicon Valley structurally transform financial markets and financial activities. This study examines the transformative effect of technological innovations emerging from Silicon Valley—specifically innovative artificial intelligence, blockchain, or cloud technologies—on Wall Street through their integration into financial markets. Through a historical literature review, it was found that technologies and technology experts from Silicon Valley significantly influenced transaction volume, the training of new finance specialists or engineers, the development of financial tools, the rise of financial literacy, the institutionalisation of entrepreneurs who facilitate the integration of technology into financial markets, and the reduction of risks by enabling secure, fast, and cost-effective transactions through technologies such as blockchain or artificial intelligence.