AI/ML – Influence also high on the financial markets

AI/ML – Influence also high on the financial markets

New York, 2/10/2023

More than half of traders surveyed in a JPMorgan Chase & Co. survey chose AI/machine learning technologies as the “most influential” in financial markets over the next three years. In the same survey last year, only 25% chose AI/ML as the most influential for commerce.

Specifically, 53% of this year’s survey chose AI/ML, followed by 14% for API integration and 12% for blockchain/distributed ledger technology.

The automation trend is visible across the market and is expanding into credit, rates and commodities, according to Scott Wacker, head of FICC e-commerce sales at JPMorgan.

He added that quantitative hedge funds are „bringing systematic models optimized with machine learning to the over-the-counter markets.“ In addition, money managers use data and AI technologies to evaluate and improve their trade execution.

Bloomberg Intelligence’s 2022 US Institutional Equity Trading study found that money managers are working to integrate AI into their algorithms and systems.