Artificial intelligence will shape the future of financial markets

Financial firm JPMorgan surveyed 835 institutional and professional traders. More than half said AI and machine learning will have the biggest impact on trading in the next three years. Last year, only a quarter of experts believed this.

According to Scott Wacker, FICC e-commerce sales manager at JPMorgan, the trend towards automation will extend to credit cards, interest rates and commodities. Quantitative funds are bringing machine learning-optimized system models to decentralized stock markets. In addition, asset management institutions are also using data in a more dynamic way thanks to AI to evaluate and improve trading operations.

Many asset managers have tried integrating some form of AI into systems and algorithms. Even so, most still see AI as an emerging technology.

Appearance ChatGPT in November 2022 spurred greater interest in AI and natural language processing. The tool rocked the Internet and sparked new debate about the role of AI in the workplace.

Mr. Wacker said, people are amazed at what AI technology has done. Natural language processing has just begun its journey.

Also in the JPMorgan survey, there are signs that the turmoil in the crypto market last year has dampened interest in the asset. 27% of traders said they have no plans to trade cryptocurrencies, up from a quarter of a year ago.

Blockchain and distributed ledger technology is also considered to have a major impact on transactions, second only to AI and application programming interface (API) integration.

(According to Bloomberg)