According to a new report from Reuters' Jamie McGeever, AI's rapid adoption in financial markets could significantly enhance efficiency and liquidity but may also increase short-term volatility.
According to the International Monetary Fund, the percentage of algorithmic trading patent applications that featured AI content surged from 19% in 2017 to over 50% by 2020.
AI's ability to process vast amounts of information quickly enables traders to generate better trading signals, improve liquidity, and enhance risk management practices.
A recent working paper by University of Chicago researchers found that investors could achieve higher returns by following investment signals derived from simple ChatGPT-based analysis.
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