Handling Extreme Market Events: 1.Sentiment Analysis: The current market mood assessment is being carried out as the model is gathering data from a variety of sources, for instance, news stories, social media, and financial reports.Through the reduction of exposure to potential losses in any market segment, diversification thus serves as the basis for the lessening of the overall risk.Diversification: The AI model is a combination of the assets, industries, and regions that are covered which results in a very balanced portfolio.2.3.