According to a recent survey conducted by JPMorgan Chase, more than half of the 835 institutional and professional traders polled believe that artificial intelligence and machine learning will have the biggest impact on financial markets in the coming years. This prediction is up from just a quarter of respondents a year ago. The group feels that application programming interface integration, which currently enables apps to work with each other, and blockchain would have the second and third-largest impacts on trading, respectively.
Predictions for this year’s largest market-influencing factors continue to vary. Fifty-seven percent of traders surveyed believe “recession risk” will have the biggest impact, followed closely by 45% who predict the impact of “inflation.” Interestingly, “liquidity availability,” which has been the top trading challenge for six years running, is no longer a primary concern, with 46% of traders instead anticipating “volatile markets” as the greatest daily trading challenge this year.
Scott Wacker, head of FICC e-commerce sales at JPMorgan, believes “This trend toward automation is something we’re seeing across the market now and is expanding into the credit and rates side as well as commodities… We’re also seeing asset managers using data in a more dynamic way using AI-enhanced technologies to assess and improve how they’re executing trades.” Wacker suggested that natural language processing, which has made headlines recently with the release of the ChatGPT tool in November, has the potential to become an important part of trader automation, but that it remains difficult to configure.
Meanwhile, the group’s enthusiasm toward cryptocurrency has waned over the past year, as 72% of traders surveyed had no plans to trade. This is up from a quarter last year.
عبدالرحمان زمین پیما
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آرمان جعفری
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