AI Will Disrupt Markets

Note from the CEO:  Discretionary traders, take note. You are going the way of the caboose. AI (artificial intelligence) is going to suck your brains and thoughts and put them on steroids to trade smarter and faster. And all this time I thought artificial intelligence was something to bluff other people into thinking you were smarter. Oh, BIG thought. Two AI robot traders go to trade against each other. Who wins?

“Trading and price setting in financial markets face disruption within a decade as artificial intelligence (AI) turns investors away and computers start to trade against each other.

The stark warning was made on Monday by Sam Sicilia, the highly respected chief investment officer of Hostplus, an industry superannuation fund catering to employees in the hospitality industry.

Mr Sicilia predicted that in less than 10 years, smart phones would be faster than the fastest computers today, flagging the extraordinary power that next generation computers will possess.

As a result of such rapid technological development, investors who tend to use intuition to help guide their decision-making will find that intelligent computers will be able to develop similar, if not superior intuition by studying and recognising patterns.

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