Читать книгу Impact of Artificial Intelligence on Organizational Transformation - Группа авторов - Страница 45

Today is the age of AI which has made its way in every aspect of our lives whether shopping or investing. So, stock markets globally are no different. AI has taken over all the aspects of trading in stock broking and investment including surveillance, monitoring, compliance, and controlling price and volume of stocks. AI has been a major tool to predict trends and also in managing investment portfolios and selecting good return generating stocks. While large companies have been making use of AI for years to mine huge amounts of data together with not only stock performance but also corporate commentary, social media trends, consumer behavior, credit card trends, etc., the advent and rise of AI-based technology have set international stock markets in a new age.

Until recent times, stock market data and price movements were analyzed via quantitative analysis was but it was time-consuming and only a few could do it and extract meaningful information, so it was used only by a few major players like Goldman Sachs and J.P Morgan, which managed nearly 20% of its portfolios with AI. Now that AI is nearly everywhere and the barriers to entry have decreased, small-time brokers and startups have started looking to leverage this tech into building a new model for investors to pick stocks.

Let us create an understanding as to what exactly is AI and how it is being used in trading and analyzing stocks, and some controversy surrounding AI’s mass acceptance.