Traders anticipate that the integration of artificial intelligence (AI) and machine learning will significantly shape the future of financial markets, according to a recent JPMorgan Chase survey of 835 institutional and professional traders. Results from the survey showed that over half of the respondents believe that AI technology will have the most impact on trading within the next three years, an increase from last year’s 25 per cent.
The trend towards automation is becoming widespread in the market and is spreading to the credit and rates sector as well as commodities. The use of systematic models optimized with machine learning by quantitative hedge funds and the utilization of AI-enhanced technologies by asset managers to analyze and enhance trade execution are among the factors driving this trend.
However, while many asset managers already incorporate some form of AI into their systems and algorithms, a majority still view AI as a relatively new and emerging technology. The recent release of OpenAI’s ChatGPT has further increased interest in AI technology and natural language processing and has raised new discussions about the role of AI in various work settings.
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