"To do that, funds have pumped resources into building out generative AI capabilities and use cases. Many firms, especially quantitative traders, are expanding initiatives they were already pursuing in areas such as machine learning. And nearly every firm is putting capital behind the trend that has dominated the public and private equity markets for several years now. Business Insider rounded up how some of the biggest and well-known managers are leveraging and backing the development of AI."
"Hedge funds have spent countless hours and astronomical amounts of money to get more information than their rivals as fast as possible. Their insatiable appetite for new and unique data has created a thriving alternative data industry, which is filled with firms scouring the world for new information to sell. As Umesh Subramanian, the chief technology officer of Ken Griffin's $69 billion Citadel, said at a Bloomberg event in October, the data firms like his are now consuming is in petabytes."
Hedge funds across strategies and asset classes are investing heavily in generative AI and expanding machine-learning initiatives to improve information processing and decision-making. Firms are allocating capital to AI capabilities and use cases to gain faster, deeper insights than rivals. The growth of alternative data vendors reflects hedge funds' demand for novel information sources, with some firms consuming data in petabytes. AI enables ingestion and analysis of vast data volumes that would otherwise overwhelm teams. The competitive nature of the industry makes even small informational advantages valuable, driving continued tech and data investments.
Read at Business Insider
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