Generative AI and Quantum-Inspired Optimization: Redefining Portfolio Risk Management and Real-Time Capital Allocation in Volatile Markets

This paper investigates the integration of generative AI and quantum-inspired optimization techniques to enhance portfolio risk management and real-time capital allocation in volatile markets. By leveraging advances in quantum algorithms and generative models, the study aims to address challenges in dynamic asset allocation and risk assessment under uncertainty, offering improved computational efficiency and predictive accuracy. The proposed approach highlights the potential to redefine traditional financial optimization frameworks, enabling more robust and adaptive decision-making in rapidly changing market conditions. These findings underscore the transformative impact of combining AI and quantum-inspired methods in modern portfolio management.