The stock market is a human-designed, human-run financial system. It was created to give value to corporations. In the 1960s, the average share was held for four years. Now, the average share is held for less than 10 seconds.
With the introduction of AI to the stock market, it has completely changed the way that the stock market operates. With this rapid buying and selling, companies need to adjust their strategies. There are a variety of industries AI will disrupt – Wall Street being one of them.
How Can Wall Street Benefit From AI?
AI-driven systems can foresee market trends but also help to make the trade better. While there is understandable anxiety about bringing AI into a human-designed market, what if it could be used to avoid bad situations?
The stock market crash of 2008 occurred on Sept. 29, 2008. The Dow Jones Industrial Average fell 777.68 points in intraday trading.
Check out some more benefits of bringing AI to Wall Street:
- The ability to analyze millions of data points
- Being able to execute trades at the optimal price
- Forecast markets with greater accuracy
- Efficiently mitigating risk which provides higher returns
Another Benefit of AI on Wall Street
With the introduction of AI to Wall Street, there will no doubt be some jobs that will be replaced by AI. And although this may seem like a “doom and gloom” statement, AI will also introduce new jobs to many industries. New problems will need to be solved, and humans can be the ones to focus on the complex, more interesting issues, while AI works on the rest. Humans will also be needed to ensure that the AI used on Wall Street is working as intended.
Companies that are Making AI Work in Finance
AI is a game changer for the stock market. Electronic trades account for almost 45 percent of revenues in cash equities trading. There are many startups that are building their businesses around the impact that AI can have. Such as:
- Sentient Technologies Inc: This startup has spent 10 years training an AI system that can scour billions of pieces of data, spot trends, adapt as it learns and make money trading stocks.
- Emma: In a new way, this startup launched a hedge fund last year using AI to write news articles.
- Greenkey Technologies: Greenkey is using AI for trading by incorporating natural language processing technology and speech recognition software to save traders time searching through large amounts of data.
“Trading is one of the top 10 places that AI can make a difference…a trading algorithm can look at the data, make a decision, act and repeat—you can have full autonomy.”~ Nello Cristianini
There Are Industries AI Will Disrupt – Time to Get Ahead!
Change is scary. But automation has the ability to take the monotony out of the stock market, leaving the fun stuff for the humans. If you are wondering how you can use AI, reach out to one of our Chatbot Consultants. Save your human workforce for the complex problems.