Digitalization and artificial intelligence as drivers of volatility in the Kazakhstan stock market

With ongoing improvements in economic conditions, the integration of finance and science and technology has become increasingly extensive. Big data, cloud computing, blockchain, artificial intelligence, and mobile banking are rapidly developing and integrating into the financial sector. The development of the Artificial Intelligence industry is an important force shaping a new round of technological revolution and industrial innovation. Against the backdrop of accelerated digital transformation in Kazakhstan’s economy and growing interest in digitalization and artificial intelligence (AI), demand for accurate tools for capital market analysis is increasing. Volatility forecasting is a critical component of investment risk assessment, particularly in the context of an emerging financial market such as Kazakhstan’s. This study aims to analyze the impact of digitalization and AI technologies on the volatility of Kazakhstan's stock market. The empirical focus is placed on major publicly traded companies listed on the Kazakhstan Stock Exchange (KASE), such as Kaspi.kz, KazMunayGas, Kazakhtelecom, and Halyk Bank. Using methods such as correlation analysis and the «Turnover/ Free Float» indicator, this research explores the relationship between technological changes and market behavior. The findings suggest that digitalization reduces transaction costs and improves market liquidity, whereas AI enhances forecasting capabilities and investor adaptability. The academic value of this work lies in its demonstration of AI applications in emerging market environments. From a practical standpoint, the results can support digital transformation strategies, improve investment decision-making, and inform financial regulation in Kazakhstan.

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